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Trade, Technology and Income Distribution

Author

Listed:
  • Ronald W. Jones

    (University of Rochester)

Abstract

The functional distribution of income can be affected by price changes in international markets, by changes in technology which may be biased in factor saving, and by reductions in cost which allow vertically -integrated production processes to be fragmented and spread over several countries. Simple 2x2 Heckscher-Ohlin models yield predictions about income distribution which are at odds with frameworks allowing a wider variety of commodities to be produced and traded. In this framework a country losing out in a labour-intensive segment of production to foreign competition may experience increases in real wages.

Suggested Citation

  • Ronald W. Jones, 1997. "Trade, Technology and Income Distribution," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 32(2), pages 129-140, July.
  • Handle: RePEc:dse:indecr:v:32:y:1997:i:2:p:129-140
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    Citations

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    Cited by:

    1. Das, Satya P., 2006. "Trade, skill acquisition and distribution," Journal of Development Economics, Elsevier, vol. 81(1), pages 118-141, October.
    2. Udo Kreickemeier & Douglas Nelson, 2017. "Fair Wages, Unemployment, and Technological Change in a Global Economy," World Scientific Book Chapters,in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 8, pages 205-235 World Scientific Publishing Co. Pte. Ltd..
    3. Neary, J Peter, 2002. "Foreign Competition and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 10(4), pages 680-693, November.
    4. Jiro AKITA & Kwan Koo YUN, 2004. "Technological Differences and the Impact of Trade on Wages," Econometric Society 2004 Far Eastern Meetings 757, Econometric Society.
    5. J. Peter Neary, 2001. "Competition, trade and wages," Working Papers 200020, School of Economics, University College Dublin.
    6. Ethier, Wilfred J., 2005. "Globalization, globalisation: Trade, technology, and wages," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 237-258.
    7. Das, Satya P., 2001. "Trade and relative wages: The role of supervisory function by skilled workers," European Economic Review, Elsevier, vol. 45(1), pages 45-65, January.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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