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Technology and Income Distribution Issues in Trade Models

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  • Ronald W. Jones

Abstract

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.

Suggested Citation

  • Ronald W. Jones, 2008. "Technology and Income Distribution Issues in Trade Models," CESifo Economic Studies, CESifo, vol. 54(4), pages 551-562, December.
  • Handle: RePEc:oup:cesifo:v:54:y:2008:i:4:p:551-562
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifn028
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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