SLIDE 1
Globalization, Networks, and the Interconnectedness of Europe and Central Asia (ECA) What’s at Stake for Inclusive Growth?
David Gould The World Bank 25 January 2018 GICA Conference Paris
Why this report?
- Connectivity—or “globalization”—and its relationship to
economic growth is often viewed in only one dimension (i.e., trade or FDI) through its impact on the transfer of ideas and technological knowledge (tacit and explicit).
- But various connections are often complements
- Ideas are transmitted through complementary connections
- Migration, trade, FDI, internet, finance, transport, etc.
- Is a more explicit way of examining the why we get “Economic
Complexity” beyond trade
- To whom you are connected to might be just as important as
the type of connection
- Trade with Germany may be more important than trade with Algeria
—not only due to the level of technological potential embodied in exports/imports— but also the connections of your partner’s connections
- Connectivity being “multidimensional” implies that shocks in
- ne dimension (say migration) can have adverse affects in
- ther dimensions (say FDI and trade) as well.
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