Dependence, social dumping and nationalism

This paper suggests that antidumping clauses in the World Trade Organization could have a positive impact in the growth of Third World countries. The labor cost increases caused would pressure for faster technical change, accelerating growth. The possible short-term unbalances in the current accounts would be temporary and would vanish in the long-term. It is also argued that the political alliances to introduce such clauses in an international organization could be an important change in the world political scene, bringing hope of forthcoming prevailing international relations that could be more positive for Third World growth.

KEYWORDS:
International labor division; labor quality; antidumping