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Tariffs, Technology and Global Integration

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Author Info
Sebastián Claro () (Instituto de Economía. Pontificia Universidad Católica de Chile.)
Abstract

In the last two decades tariffs around the globe have fallen significantly. However, less well known are their changes in the sectorial structure of protection rates. Between 1988 and 1998, relative tariffs have increased in capital-intensive sectors, and this shift is specially strong in low wage countries. These changes in tariff structures reflect the response of governments to increasing integration in product and capital markets in the presence of international technology differences. Integration in factor markets revives the concept of absolute advantage, and countries adjust their tariff structure in order to compensate for technology differences and cost pressures in order to keep a diversified production structure. As a corollary, wage differences increase both within and between countries.

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Publisher Info
Paper provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 240.

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Date of creation: 2003
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Handle: RePEc:ioe:doctra:240

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Related research
Keywords: Globalization; International Technology Differences; Tariffs.;

Find related papers by JEL classification:
F1 - International Economics - - Trade
F20 - International Economics - - International Factor Movements and International Business - - - General

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. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-87, December. [Downloadable!] (restricted)
  2. Haskel, Jonathan E. & Slaughter, Matthew J., 2002. "Does the sector bias of skill-biased technical change explain changing skill premia?," European Economic Review, Elsevier, vol. 46(10), pages 1757-1783, December. [Downloadable!] (restricted)
  3. J. Peter Neary, 2000. "Competition, Trade and Wages," Working Papers 200020, School Of Economics, University College Dublin. [Downloadable!]
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  4. Susan Chun Zhu & Daniel Trefler, 2001. "Ginis in General Equilibrium: Trade, Technology and Southern Inequality," NBER Working Papers 8446, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Richard B. Freeman & Remco Oostendorp, 2000. "Wages Around the World: Pay Across Occupations and Countries," NBER Working Papers 8058, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Desjonqueres, Thibaut & Machin, Stephen & Van Reenen, John, 1999. " Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures Be Resurrected?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(4), pages 533-54, December. [Downloadable!] (restricted)
  7. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May. [Downloadable!] (restricted)
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  8. Nicita, Alessandro & Olarreaga, Marcelo, 2001. "Trade and production, 1976-99," Policy Research Working Paper Series 2701, The World Bank. [Downloadable!]
  9. J Peter Neary, 2002. "Globalisation and Market Structure," Working Papers 200220, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
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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. Sebastián Claro, 2003. "Labor Market Implications of Limited Integration," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 434-440. [Downloadable!]
  2. Sebastián Claro, 2003. "Labor Market Implications of Limited Integration," Documentos de Trabajo 245, Instituto de Economía. Pontificia Universidad Católica de Chile.. [Downloadable!]
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