The last few decades have witnessed an intense process of production relocation from the developed to the developing economies. This phenomenon has increased countries’ international openness as well as ending the secular trend of widening inequality between the rich and poor world.
This book makes an in-depth study of the process and how it has impacted the growth of the countries involved. Offshoring to lower-wage countries tends to harm the former exporters of the relocated products. The end result will depend, however, on countries’ ability to restructure their exports and adapt to the new patterns of specialization.
On the whole, the advanced economies have adapted successfully to production relocation without registering any negative impact at the macroeconomic level. That said, the problems of specific collectives that have suffered as a result have not been sufficiently addressed by the public authorities. This has given rise to social tensions and a degree of resurgence in protectionist ideas, which, if allowed to flourish, could endanger the global improvement of social welfare.
The authors look in particular at the effects of production offshoring on the growth of the Spanish economy. Spain has so far been relatively untouched by the process, but there is nothing to say that this will not change in the near future. Given the relentless nature of changes in the world economy and the need to stay a step ahead, it is vital for the country to resume the structural reforms that have been put on hold for some time now. Globalization and technological progress can substantially improve the welfare of all citizens, but hard work and good governance are needed to exploit the opportunities and avoid the risks entailed by being left behind.
This publication will be of interest to researchers, economists and members of the public interested in the evolution of the world economy and the challenges facing the Spanish economy, offering information that is relevant to understand the key issues facing the world economy.