Middlemen Margins And Globalization
AbstractWe provide a competitive theory of middlemen or entrepreneurs who develop brand-name reputations necessary to overcome product quality moral hazard problems, embedded in a Heckscher-Ohlin model of North-South trade. Agents with heterogeneous entrepreneurial abil- ities sort into different sectors and occupations, with endogenous inter- sectoral mobility. In some contexts competitive equilibrium is charac- terized by restricted inter-sectoral mobility; bene ts of trade liberal- ization in the South accrue disproportionately to middlemen, North- South factor price differences grow, and offshoring reduces inequality in the South. In other contexts there is enough mobility; classical Stolper-Samuelson and factor price equalization results hold.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Boston University - Department of Economics in its series Boston University - Department of Economics - Working Papers Series with number WP2011-034.
Length: 48 pages
Date of creation: Jan 2011
Date of revision:
middlemen; reputation; inequality; trade liberalization; North-South trade;
Find related papers by JEL classification:
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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.:
- Arnaud Costinot & Jonathan Vogel, 2009.
"Matching and Inequality in the World Economy,"
NBER Working Papers
14672, National Bureau of Economic Research, Inc.
- Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010.
"Inequality and Unemployment in a Global Economy,"
Econometric Society, vol. 78(4), pages 1239-1283, 07.
- Helpman, Elhanan & Itskhoki, Oleg & Redding, Stephen J., 2009. "Inequality and Unemployment in a Global Economy," CEPR Discussion Papers 7353, C.E.P.R. Discussion Papers.
- Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2009. "Inequality and Unemployment in a Global Economy," CEP Discussion Papers dp0940, Centre for Economic Performance, LSE.
- Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2008. "Inequality and Unemployment in a Global Economy," NBER Working Papers 14478, National Bureau of Economic Research, Inc.
- JaeBin Ahn & Amit K. Khandelwal & Shang-Jin Wei, 2010.
"The Role of Intermediaries in Facilitating Trade,"
NBER Working Papers
15706, National Bureau of Economic Research, Inc.
- Pol Antràs & Arnaud Costinot, 2011.
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(3), pages 1319-1374.
- Antràs, Pol & Costinot, Arnaud, 2010. "Intermediated Trade," CEPR Discussion Papers 7696, C.E.P.R. Discussion Papers.
- Pol Antràs & Arnaud Costinot, 2010. "Intermediated Trade," NBER Working Papers 15750, National Bureau of Economic Research, Inc.
- Antras, Pol & Costinot, Arnaud, 2011. "Intermediated Trade," Scholarly Articles 4784024, Harvard University Department of Economics.
- Marcel Fafchamps & Ruth Hill, 2005.
"Price Transmission and Trader Entry in Domestic Commodity Markets,"
Economics Series Working Papers
GPRG-WPS-038, University of Oxford, Department of Economics.
- Marcel Fafchamps & Ruth Vargas Hill, 2008. "Price Transmission and Trader Entry in Domestic Commodity Markets," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 729-766.
- Timothy Van Zandt & Roy Radner, 1998. "Real-Time Decentralized Information Processing and Returns to Scale," Discussion Papers 1233, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Karabay, Bilgehan & McLaren, John, 2010.
"Trade, offshoring, and the invisible handshake,"
Journal of International Economics,
Elsevier, vol. 82(1), pages 26-34, September.
- Morisset, Jacques, 1998. "Unfair Trade? The Increasing Gap between World and Domestic Prices in Commodity Markets during the Past 25 Years," World Bank Economic Review, World Bank Group, vol. 12(3), pages 503-26, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Courtney Sullivan).
If references are entirely missing, you can add them using this form.