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Embedded Liberalism in the Digital Era

Published online by Cambridge University Press:  16 February 2021

Edward D. Mansfield  and
Nita Rudra
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Abstract

In recent years, the volume and intensity of attacks on globalization have been steadily rising. It is frequently argued that the antiglobalization backlash stems from strains that have been placed on the compromise of embedded liberalism. We argue that existing research underemphasizes how technological change and the digital revolution have contributed to these strains. Global value chains facilitated by the digital revolution have linked technology in advanced industrial countries to low-cost labor in developing countries, precipitating distributional losses for low-skilled labor in the industrial world. Further, the digital revolution has led to regulatory challenges involving both capital and labor. We argue that, as a result, governments face both mounting opposition to globalization and heightened difficulty in supporting the programs and policies necessary to buffer the adverse domestic effects of globalization and maintain support for embedded liberalism.

Keywords

Embedded liberalismdigital revolutionglobal digital interdependenceglobal value chainsmultinational corporations
Type
Internal Challenges to the Liberal International Order: Economic
Information
International Organization , Volume 75 , Special Issue 2: Challenges to the Liberal International Order: International Organization at 75 , Spring 2021 , pp. 558 - 585
Copyright
Copyright © The IO Foundation 2021

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