The Globalization Debate and India

We discuss the pros and cons of the liberalization of international capital flows and international trade in goods and services, with special reference to India. We look at both the theoretical and empirical literature studying the impact of capital flows and trade in goods on real incomes, growth and productivity growth. Both macroand micro-level evidence is surveyed. We also review country-specific analyses, including ones for India, of the additional benefits from greater varieties as a result of trade. Finally, we look at the impact of trade on poverty and on the welfare of workers.