THE MYTH OF ECONOMIC GLOBALIZATION

Geographic patterns of commodity trade and foreign direct investment a re nor consistent with the proposition that European economies are exp eriencing a process of increasing 'globalisation'. Internationalisatio n is taking place as economic integration within the European Union. D uring the last 35 years, the European Union has not become relatively more integrated with the world's other trade blocs. Moreover, in contr ast to what globalisation theory might cause us to predict, the share in foreign direct investment taken by low-wage countries shows little growth. We try to explain such findings, using arguments about the nat ure of the process of technological change.