Notes from Professor David Greasley's Guest Lecture presented at the Treasury on 18 March 2003.
Professor David Greasley
University of Edinburgh
Lessons of Economic History (Taken from David Greasley's notes)
- Migration tends to equalise wages internationally, but had little effect in the case of New Zealand.
- Trade increased the relative value of the abundant factor, land in the case of New Zealand.
- Globalisation benefited New Zealand.
- Between 1870-1913:
- 1/3 real wage growth from productivity;
- 1/3 from improved terms of trade;
- 1/3 from redistribution towards labour
- Between 1890-1913 landowners gained most from trade.
- Globalisation can have powerful and detrimental effects on income distribution, eg when land ownership is concentrated.
- Globalisation creates opportunities, outcomes depend on factor endowments broadly defined, including skills and enterprise.