Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (4)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Hoekman, B.
Right arrow Articles by Smarzynska Javorcik, B.
Right arrow Search for Related Content
Related Collections
Right arrow F13 - Trade Policy; International Trade Organizations
Right arrow F23 - Multinational Firms; International Business
Right arrow O33 - Technological Change: Choices and Consequences; Diffusion Processes
Right arrow P33 - International Trade, Finance, Investment, and Aid
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

OXFORD REVIEW OF ECONOMIC POLICY, VOL. 20, NO. 3, PP. 457-473
Oxford Review of Economic Policy vol. 20 no. 3 2004 © Oxford University Press and the Oxford Review of Economic Policy Limited 2004; all rights reserved.

Policies Facilitating Firm Adjustment to Globalization

Bernard Hoekman
The World Bank, Groupe d'Economie Mondiale, Sciences Po, and CEPR

Beata Smarzynska Javorcik
The World Bank and CEPR1

Abstract

This paper focuses on policies facilitating firm adjustment to globalization. We briefly review the effects of trade and investment liberalization on firms, focusing on within-industry effects. We postulate that governments' role in supporting the process is to: (i) ensure that firms face the 'right' incentives to adjust, and (ii) intervene in areas where market failures are present. The main message of the paper is that, while many policies could be adopted, they need to be carefully designed and implemented in a stable macroeconomic environment. An institutional infrastructure that supports the functioning of modern markets is most important. Pro-active support policies of whatever stripe should be subject to cost–benefit analysis, based on the existence of an identified market failure and monitored for performance and cost effectiveness. Transparency and accountability are critical in ensuring that interventions accomplish their intended objectives rather than being vehicles for rent seeking.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 OXF REV ECON POLICYHome page
C. P. Bown and R. McCulloch
Trade adjustment in the WTO system: are more safeguards the answer?
Oxf. Rev. Econ. Policy, September 1, 2007; 23(3): 415 - 439.
[Abstract] [Full Text] [PDF]


Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.