BUSINESS
03/28/2008 02:46 am ET | Updated May 25, 2011

Glozalization "A Blessing" For Western Europe

Increased trade, outsourcing and offshoring do not create unemployment but boost the number of jobs in advanced economies, a study of European labour markets says on Tuesday.

The European Economic Advisory Group, a consortium of European academics organised by the Munich-based Ifo Institute, argues that although globalisation can lead to a fall in demand for certain types of skill, it also tends to sweep away job-destroying rigidities in labour markets.

The evidence from the group's work suggests the positive effects of globalisation outweigh the negative effects. Although the group concedes that its statistical work remains "crude", the report concludes that globalisation is likely, if anything, to lead to long-term rises in employment.

"If so, globalisation will not be a curse for employment in western Europe, it could instead turn out to be a blessing," the report says.

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