Technology and Income Distribution Issues in Trade Models
In a world characterized by global competitive market conditions, technological improvements initially localized in one sector of one country cause real income changes at home and abroad, sometimes in paradoxical fashion. A foreign technological advance in the production of a commodity not produced at home may worsen the home country's real income. As well, a foreign technological advance in a commodity the home country exports may serve to raise home real incomes. These paradoxes are explained and related to the basic proposition that a country moving from autarky to free trade must gain. (JEL codes: F10, F11, O30) Copyright , Oxford University Press.
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Volume (Year): 54 (2008)
Issue (Month): 4 (December)
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