September 15 2009
Fast Growth in India and China and the Implication for US Workers
Professor Ajit Singh, Director, Cambridge Endowment for Research in Finance (CERF) addressed the concern that globalization of the world's resource and product markets, together with rapid growth of India and China have a negative impact on workers in the US and other advance nations.
Professor Singh addressed the Cornell Community at the South Asia Program Seminar on September 14, 2009. His analysis included simulations of different scenarios, derived from the World Econometric Model of the Cambridge Endowment for Research in Finance (CERF).
Professor Singh argues that the growth of India and China will not affect US workers because of supply-side constraints faced by the growing economies. In particular, these include natural resource limitations, such as energy and raw material availability.
Further, Professor Singh argues that demand effects and innovation in the US, with emphasis on technology change, have been largely ignored. Historical evidence has shown that production of cheap goods has reduced inflationary pressures, enabling the US to run at higher than optimal levels of labor and capital. The Econometric model suggests that cooperation between India, China and rest of the world is required to ensure seamless industrialization in Asian countries, without negative consequences for workers in the US and other advance nations.
Ajit Singh: Director of Research Cambridge Endowment for Research in Finance CERF, Judge Business School, University of Cambridge Chair in Economics, University of Birmingham Business School Emeritus Professor of Economics, University of Cambridge Life Fellow
The South Asia Program Seminar Series was sponsored by Hans Bethe House, South Asia Program, Cornell Law School, City and Regional Planning and Department of Economics.