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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
  • 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.

Suggested Citation

  • Schluter, Gerald & Lee, Chinkook, 2005. "The ‘New Economy’ and efficiency in food market system: A complement or a battleground between economic classes?," Technology in Society, Elsevier, vol. 27(2), pages 217-228.
    • Handle: RePEc:eee:teinso:v:27:y:2005:i:2:p:217-228
    DOI: 10.1016/j.techsoc.2005.01.006
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    References listed on IDEAS

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    1. Krugman, Paul R., 2000. "Technology, trade and factor prices," Journal of International Economics, Elsevier, vol. 50(1), pages 51-71, February.
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    1. Zeng, Yiwu & Jia, Fu & Wan, Li & Guo, Hongdong, . "E-commerce in agri-food sector: a systematic literature review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4).

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