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The "New Economy" And Efficiency In Food Market System: A Complement Or A Battleground Between Economic Classes?

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  • Schluter, Gerald E.
  • Lee, Chinkook

Abstract

Rapid developments in E-commerce can bring efficiency in the food market system by cutting transaction costs. However, it can also bring a battleground between developed and developing countries and also within developed countries because the New Economy emphasizes knowledge-based labor practices and low-skilled workers of trading nations compete for a shrinking need for their services. An Input-Output model is used to examine the effects on high-skilled and low-skilled worker demand, particularly in food and agriculture. The food and agricultural industries are significant employers of low-skilled labor. Food and agricultural trade has reduced low-skilled labor demand in the United States.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25918.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25918

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Keywords: Food and Agricultural Trade; Demand for High-skilled and low-skilled Labor; Input-Output Analysis; Marketing;

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  1. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September.
  2. Elhanan Helpman, 1998. "The Structure of Foreign Trade," NBER Working Papers 6752, National Bureau of Economic Research, Inc.
  3. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc.
  4. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
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