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Free trade and income redistribution in some developing and newly industrialized countries

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Author Info
Henry Thompson

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Abstract

A competitive general equilibrium model of production is specified and the long-run comparative static elasticities of changing prices on factor prices are examined in eight developing and newly industrialized countries. Unskilled labor in these developing countries stands to gain from a program of global free trade characterized by increased manufacturing exports and falling prices of imported business services, while capital owners and skilled labor lose. Results are contrasted with developed countries, the United States in particular, where unskilled labor will lose while capital and skilled labor enjoy gains with global free trade. Copyright Kluwer Academic Publishers 1995

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File URL: http://hdl.handle.net/10.1007/BF01000085
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Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 6 (1995)
Issue (Month): 3 (July)
Pages: 265-280
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Handle: RePEc:kap:openec:v:6:y:1995:i:3:p:265-280

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Related research
Keywords: free trade; income distribution; developing countries;

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References listed on IDEAS
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.:
  1. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-21, August. [Downloadable!] (restricted)
  2. Ruffin, Roy J., 1981. "Trade and factor movements with three factors and two goods," Economics Letters, Elsevier, vol. 7(2), pages 177-182. [Downloadable!] (restricted)
  3. Clark, Don P & Thompson, Henry, 1990. "Factor Migration and Income Distribution in Some Developing Countries," Bulletin of Economic Research, Blackwell Publishing, vol. 42(2), pages 131-40, April.
  4. Chang, Winston W, 1979. "Some Theorems of Trade and General Equilibrium with Many Goods and Factors," Econometrica, Econometric Society, vol. 47(3), pages 709-26, May. [Downloadable!] (restricted)
  5. Jones, Ronald W. & Easton, Stephen T., 1983. "Factor intensities and factor substitution in general equilibrium," Journal of International Economics, Elsevier, vol. 15(1-2), pages 65-99, August. [Downloadable!] (restricted)
  6. Isbister, John, 1971. "Urban Employment and Wages in a Developing Economy: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 20(1), pages 24-46, October.
  7. Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Michael Thompson, 2002. "Trade and Foreign Capital: Income Redistribution in Simulated Trade Models," International Studies Program Working Paper Series, at AYSPS, GSU paper0208, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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