Overview

This text develops the insights of the often separate literatures on globalization and information technology and demonstrates their interdependence. The central insight is that globalization is mainly a technological phenomenon, driven by influences exerted on international trade and foreign investment by various forms of information technology. Developing countries, however, are not sharing equally in the gains from globalization thus induced by the new technologies. These gains tend to be concentrated among a narrow group of relatively advanced countries and, moreover within some of those countries information technology appears to exacerbate existing income inequalities.

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Jeffrey James is Professor of Development Economics at Tilburg University, The Netherlands.

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