Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation
AbstractThis paper formulates a specific factor model of trade with skilled and unskilled workers as the specific and capital as the mobile factors. Production of goods is subject to intermediation and corruption. We then allow for international capital mobility and show that corruption as an activity may be squeezed out if the cost of intermediation is held fixed at any exogenously fixed level.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 3 ()
Contact details of provider:
International Trade; Intermediation; Wage-inequality; General Equilibrium.;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cassing, James H, 1978. "Transport Costs in International Trade Theory: A Comparison with the Analysis of Nontraded Goods," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 535-50, November.
- Toru Kikuchi & Sugata Marjit & Biswajit Mandal, 2013.
"Trade with Time Zone Differences: Factor Market Implications,"
Review of Development Economics,
Wiley Blackwell, vol. 17(4), pages 699-711, November.
- Kikuchi, Toru & Marjit, Sugata, 2011. "Trade with time zone differences: factor market implications," MPRA Paper 30788, University Library of Munich, Germany.
- Toru Kikuchi & Sugata Marjit & Biswajit Mandal, 2012. "Trade with Time Zone Differences:Factor Market Implications," Discussion Papers Series 462, School of Economics, University of Queensland, Australia.
- Kikuchi, Toru & Marjit, Sugata & Mandal, Biswajit, 2011. "Trade with Time Zone Differences: Factor Market Implications," MPRA Paper 37931, University Library of Munich, Germany, revised 2012.
- Falvey, Rodney E, 1976. "Transport Costs in the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 86(343), pages 536-50, September.
- Antonio Andres & Carlyn Ramlogan-Dobson, 2011.
"Is Corruption Really Bad for Inequality? Evidence from Latin America,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 47(7), pages 959-976.
- Carlyn Dobson & Antonio Rodríguez, 2010. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Development Research Working Paper Series 02/2010, Institute for Advanced Development Studies.
- Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
- Sugata Marjit & Biswajit Mandal, 2012. "Domestic trading costs and pure theory of international trade," International Journal of Economic Theory, The International Society for Economic Theory, vol. 8(2), pages 165-178, 06.
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