This paper offers a critical survey of a strong globalization thesis that predicts a direct link from more open trade and investment regimes to faster economic growth in developing countries and income convergence across the global economy. Its examination of recent experience suggests that...

This paper develops a general equilibrium model of North-South trade with different wage setting regimes and a nontradeables sector. Simulations confirm that substantial gains from trade openness can be accompanied by a significant deterioration in the position of unskilled Northern workers....