Information technology and the integration of the global economy - Spence

This chapter, “Information technology and the integration of the global economy” comes from Michael Spence’s 2011 book, The Next Convergence:  The Future of Economic Growth in a Multispeed World.  As described on Amazon, in this book Spence looks ahead to the development of the world’s economy over the next fifty years and discusses the way public policies have brought so many people out of poverty as the developing world and developed world begin to approach one another from an economic standpoint.  While there are clearly still strong distinctions between the two, Spence considers what this convergence means looking forward.  Michael Spence is a Nobel laureate of the 2001 Nobel Memorial Prize in Economic Sciences for work on the dynamics of information flows and market development. Adrian Stoian, a California State University – East Bay professor, remarked in his review in the American Economist (2012) that this book was written for a general audience as he clearly explains the context around and the history behind the shifts in the global economy.

Spence is well educated and respected individual.  He received the following educational degrees:  an undergraduate degree from Princeton University, a graduate degree from Oxford University, and his Ph.D. from Harvard University. He is currently a Professor of Economics at New YorkUniversity’s Stern School of Business (he began teaching there ins 2010), a William R. Berkley Professor in Economics & Business, a senior fellow at the Hoover Insitution, a Phillip H. Knight Professor Emeritus of Management at StanfordUniversity’s Graduate School.  He was formerly as professor there for 9 years (1990-1999).  Additionally he was the Chairman of the independent Commission on Growth and Development (2006-2010).  He is a consultant to PIMCO, a senior adviser at Oak Hill Investment Management, and a board member at the Stanford Management Company.

Spence is the author of 2 other books and some 50 articles.

Initial reviews indicate that this book was received well.  Many felt that book was backed by a lot of factual content, was insightful and also easy to follow.  Some criticisms however stemmed from the mere fact that the content was backed by a lot of scholarly work that is already easily accessibly, readers expected that as a Nobel laureate, Spence would have introduced something new to his arguments.  Adrian Stoian's (2012) review of this book critiqued that Spence's finally arguments were not back by enough academic reference, however overall applauded Spence for this work.  Interestingly, Stoian pointed to Ch. 37, "Information Technology and the Integration of the Global Economy," stating that they felt the chapter was somewhat overlooked and should have been given greater consideration within the book. Stoian specifically indicated that Spence could have further elaborated on the status of the educational systems and their impact on the labor markets.  Charles Jones additionally wrote a review of Spence's text for the American Association for the Advancement of Science (2011).  Jones calls to attention a few highlights in this book one of those being the tie between economic growth and innovation and knowledge which seems very relevant to this class. Jones, agrees with Spence that international trade and globalization has facilitated economic growth.  Jones' only critique is that Spence might have made an even stronger argument had he included a discussion on government debt.  However, this was written at the height of the European financial crisis.  

Overall it seems that Spence's book was very well received.  Most negative comments come from readers who wish he just would have elaborated on more topics which indicates that his opinion is well respected and many wish to learn more from his point of view.  

Sources:

Stoian, A. (2012). The Next Convergence: The Future of Economic Growth in a Multispeed World. American Economist, 57(2), 261-263.

Jones, C. (2011).  To Close the Gap. The Next Convergence: The Future of Economic Growth in a Multispeed World. American Association for the Advancement of Science, 312. 

Hyperlinks:

https://www.gsb.stanford.edu/faculty-research/faculty/michael-spence

https://www.gsb.stanford.edu/faculty-research/books/next-convergence-future-economic-growth-multispeed-world

http://www.stern.nyu.edu/faculty/bio/a-michael-spence