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Trade, Technology and Income Distribution

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  • Ronald W. Jones

    (University of Rochester)

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    Abstract

    The functional distribution of income can be affected by price changes in international markets, by changes in technology which may be biased in factor saving, and by reductions in cost which allow vertically -integrated production processes to be fragmented and spread over several countries. Simple 2x2 Heckscher-Ohlin models yield predictions about income distribution which are at odds with frameworks allowing a wider variety of commodities to be produced and traded. In this framework a country losing out in a labour-intensive segment of production to foreign competition may experience increases in real wages.

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    Bibliographic Info

    Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

    Volume (Year): 32 (1997)
    Issue (Month): 2 (July)
    Pages: 129-140

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    Handle: RePEc:dse:indecr:v:32:y:1997:i:2:p:129-140

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    Cited by:
    1. Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute.
    2. J Peter Neary, 2001. "Foreign Competition and Wage Inequality," Working Papers 200102, School Of Economics, University College Dublin.
    3. Das, Satya P., 2001. "Trade and relative wages: The role of supervisory function by skilled workers," European Economic Review, Elsevier, vol. 45(1), pages 45-65, January.
    4. Neary, J Peter, 2001. "Competition, Trade and Wages," CEPR Discussion Papers 2732, C.E.P.R. Discussion Papers.
    5. Jiro AKITA & Kwan Koo YUN, 2004. "Technological Differences and the Impact of Trade on Wages," Econometric Society 2004 Far Eastern Meetings 757, Econometric Society.
    6. Kreickemeier, Udo & Nelson, Douglas, 2006. "Fair wages, unemployment and technological change in a global economy," Journal of International Economics, Elsevier, vol. 70(2), pages 451-469, December.
    7. Ethier, Wilfred J., 2005. "Globalization, globalisation: Trade, technology, and wages," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 237-258.
    8. Das, Satya P., 2006. "Trade, skill acquisition and distribution," Journal of Development Economics, Elsevier, vol. 81(1), pages 118-141, October.

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