Understanding the Fear of Globalisation

Why does the public seem to have much stronger opposition to the current wave of globalisation than to the previous rounds of trade liberalisation? This paper identifies some of the key differences between globalisation and trade liberalisation that could be responsible for phenomenon. We show that (i) while both globalisation and trade liberalisation create inter-sector income distribution, the former also creates intra-sector income distribution and intra-sector uncertainty and (ii) that these features imply lower public support for globalisation. © 2011 Blackwell Publishing Ltd.