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Trade, technology and labour markets in the world economy, 1970-90: A computable general equilibrium analysis


  • Patrick Minford
  • Jonathan Riley
  • Eric Nowell


Whether the plight of OECD unskilled labour is due to trade or technology is examined with a general equilibrium Heckscher-Ohlin calibrated model of North and South. Technology transfer from North to South via direct foreign investment in unskilled-labour-intensive manufacturing industries is identified as the trade shock. Simulations are carried out for this and other relevant shocks, and compared with the facts of the 1970-90 period. Weights on the shocks are selected by least squares. It is found that the roles of trade and technology in the plight of Northern unskilled labour are roughly equal.

Suggested Citation

  • Patrick Minford & Jonathan Riley & Eric Nowell, 1997. "Trade, technology and labour markets in the world economy, 1970-90: A computable general equilibrium analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 34(2), pages 1-34.
  • Handle: RePEc:taf:jdevst:v:34:y:1997:i:2:p:1-34
    DOI: 10.1080/00220389708422510

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    Cited by:

    1. repec:kap:openec:v:29:y:2018:i:3:d:10.1007_s11079-017-9470-z is not listed on IDEAS
    2. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," Thesis Commons bmxag, Center for Open Science.
    3. Patrick Minford & Yongdeng Xu, 2018. "Classical or Gravity? Which Trade Model Best Matches the UK Facts?," Open Economies Review, Springer, vol. 29(3), pages 579-611, July.
    4. Welsch, Heinz, 2001. "The determinants of production-related carbon emissions in West Germany, 1985-1990: assessing the role of technology and trade," Structural Change and Economic Dynamics, Elsevier, vol. 12(4), pages 425-455, December.

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