By Howard Lewis III  and J. David Richardson; The Institute for International Economics; October 2001 

In this study Howard Lewis III and J. David Richardson explore the gains that workers, companies, and communities achieve from choosing to engage with the global economy. Why Global Commitment Really Matters! follows two earlier Institute publications that explored the benefits of exporting.

This study summarizes new research on American importing, international investment, and technology transfers that shows similar benefits.All types of global commitment seem to generate greater productivity, higher pay, stronger growth, and better survival rates. These in turn rejuvenate entire industries and their workforces and communities as they allow better firms and jobs to supplant those with less desirable traits. Exports, imports, investment, and technology transfer form a family of global commitments that spawns a family of economic rewards. .

The study shows that exactly the same patterns are being discovered in similar new research abroad. Little of this new research has made its way into the mainstream of public debate over trade and economic policies.The authors supplement their research survey with profiles of real American exporters, importers, multinational companies, foreign affiliates, and technology partners. They also weigh criticisms and alternative interpretations of the research, and examine the problems of those left on the margins of the global economy.

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Book Description:

For both soaring Silicon Valley and slumping Central New York, and for firms both large and small, global integration usually has a very positive impact. In this study, Howard Lewis and J. David Richardson explore new gains from deep international integration, some of which were featured in two earlier Institute studies of the under-appreciated benefits of deep export dependence (*). Why Global Integration Matters Most! updates the export studies and explores the evidence for a more radical idea.

A growing body of research literature demonstrates that globally engaged firms and their workers enjoy numerous performance benefits over local counterparts that are identical with respect to size, industry, and location. Conscious decisions to export, import, invest abroad, or partner with foreign investors or technology seem to be a catalyst for added benefits, especially rapid and stable job growth. Over time, globally engaged firms rejuvenate whole industries as their market share rises and that of more insular firms shrinks. Any, many, or all types of global commitments reward firms, workers, and local communities.

The study supplements its research survey with real-life profiles of representative American exporters, importers (often businesses importing machines and components), investors abroad, foreign affiliates, and technology partners. It also weighs criticisms and alternative interpretations of the research, and discusses the problems of those left on the margins of global engagement.  

About the Author:

J. David Richardson, Senior Fellow at the Institute for International Economics, is also Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University and has written extensively on trade and international economic policy issues, including Global Competition Policy (1997) and Competition Policies for the Global Economy (1997) with Edward M. Graham, Why Exports Really Matter! (1995), Why Exports Matter: More! (1996), and Sizing Up U.S. Export Disincentives (1993).

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