Unexpected effects of trade with low-income countries

• Pierre-Noël GIRAUD
  Professor of economics, École des mines de Paris
  
• Jean-Marc OURY
  Director, Compagnie Générale des Eaux
  
• Jean-Claude THOENIG
  Director, Public Policy Analysis Group, CNRS
  

Summary

Trade with low-income countries does not necessarily lead to unemployment in industrialised nations ; but it may substantially widen the disparity of incomes within both kinds of countries. It may also lead to the disappearance of the middle class, as can be seen in the US. This is not the only possible change, but it is the likely result of non-intervention on the part of governments in regulating international exchange or income policy. This thesis provoked a lively discussion.

Summary translated from French by B&A CONSEIL.

• The entire article was written by Pierre-Noël GIRAUD and Michel BERRY and translated by B&A CONSEIL.

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