Analysis on Phases of Globalization and Convergence

Bin Tang

doi:10.11648/j.jwer.20180701.14

Abstract

Globalization, along with many conceptual notions, such as economic growth, convergence has involved a mass of research works, but remains disputable based on miscellaneous samples and periods. This paper aims to discuss to what extent two phases of globalization are similar in the light of convergence and variants. With methods of historical analysis and empirical evidence synthesis, we find the first and second phases of globalization have common features on remarkable economic growth, transport costs’ decline and free and flexible trade policy, but the range and extent are moderately different. Additionally, the two phases of globalization have various convergence paths. Some new perspectives such as social and political dimensions and policy implications have been referred to.

Highlights

Globalization, from the economic perspective, known as “a movement towards neoliberal economic policy reforms and an increase in the worldwide movement of capital, goods, services and labour” [1], can be tracked back in the 19th century
The first phase of globalization (G1) was defined from 1850 to 1914, due to the interwar period of 1914-1945, after which there is the second phase of globalization (G2) dating from 1950 till [2]
Convergence, originally detected among “Atlantic economies”, indicating that economies with varied levels and situations can move towards a point from different directions and meet or reach the same level, is bound up with the evolution of globalization [3, 4]

Summary

Introduction

Globalization, from the economic perspective, known as “a movement towards neoliberal economic policy reforms and an increase in the worldwide movement of capital, goods, services and labour” [1], can be tracked back in the 19th century. The first phase of globalization (G1) was defined from 1850 to 1914, due to the interwar period of 1914-1945, after which there is the second phase of globalization (G2) dating from 1950 till [2]. Convergence, originally detected among “Atlantic economies” ( called OECD countries), indicating that economies with varied levels and situations can move towards a point from different directions and meet or reach the same level, is bound up with the evolution of globalization [3, 4]. The New World, known as U.S and European countries converged on the issue of trade expansion, commodity prices, real wages, etc. The extent and corresponding periods, vary from patterns or economies [6]. Each stage is seen as a prerequisite for the stage, as new political, economic and social institutions should enable more advanced and differentiated activities in the future [7]

Objectives

Findings

Discussion

Conclusion