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Trade, Technology, Income Distribution and Growth

Author

Listed:
  • Hernando Zuleta
  • Luiza Pogorelova

Abstract

We modify the standard trade model introducing the possibility of biased technological changes. This model help to explain the falling labor shares as well as the mixed changes in skill premium in developing countries after trade liberalization takes place.

Suggested Citation

  • Hernando Zuleta & Luiza Pogorelova, 2012. "Trade, Technology, Income Distribution and Growth," Documentos CEDE 10022, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:010022
    as

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    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/8349/dcede2012-28.pdf
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    References listed on IDEAS

    as
    1. Bental, Benjamin & Demougin, Dominique, 2010. "Declining labor shares and bargaining power: An institutional explanation," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 443-456, March.
    2. Hernando Zuleta, 2008. "Factor Saving Innovations and Factor Income Shares," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 836-851, October.
    3. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Exchange," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 65-76, Palgrave Macmillan.
    4. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Measurement," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 77-96, Palgrave Macmillan.
    5. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
    6. Zeira, Joseph, 2007. "Wage inequality, technology, and trade," Journal of Economic Theory, Elsevier, vol. 137(1), pages 79-103, November.
    7. Ripoll, Marla, 2005. "Trade liberalization and the skill premium in developing economies," Journal of Monetary Economics, Elsevier, vol. 52(3), pages 601-619, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    skill premium; biased technological change; international trade; Heckscher-Ohlin model; factor income shares;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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