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Tariffs, Technology and Global Integration

Author

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  • Sebastián Claro

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

In the last two decades tariffs around the globe have fallen significantly. However, less well known are their changes in the sectorial structure of protection rates. Between 1988 and 1998, relative tariffs have increased in capital-intensive sectors, and this shift is specially strong in low wage countries. These changes in tariff structures reflect the response of governments to increasing integration in product and capital markets in the presence of international technology differences. Integration in factor markets revives the concept of absolute advantage, and countries adjust their tariff structure in order to compensate for technology differences and cost pressures in order to keep a diversified production structure. As a corollary, wage differences increase both within and between countries.

Suggested Citation

  • Sebastián Claro, 2003. "Tariffs, Technology and Global Integration," Documentos de Trabajo 240, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:240
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    File URL: https://www.economia.uc.cl/docs/doctra/dt-240.pdf
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    References listed on IDEAS

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    1. Susan Chun Zhu & Daniel Trefler, 2001. "Ginis in General Equilibrium: Trade, Technology and Southern Inequality," NBER Working Papers 8446, National Bureau of Economic Research, Inc.
    2. Sebastián Claro, 2003. "A Cross-Country Estimation of the Elasticity of Substitution between Labor and Capital in Manufacturing Industries," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(120), pages 239-257.
    3. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-987, December.
    4. Haskel, Jonathan E. & Slaughter, Matthew J., 2002. "Does the sector bias of skill-biased technical change explain changing skill premia?," European Economic Review, Elsevier, vol. 46(10), pages 1757-1783, December.
    5. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    6. Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
    7. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
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    Cited by:

    1. Sebastián Claro, 2003. "Labor Market Implications of Limited Integration," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 434-440.

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    More about this item

    Keywords

    Globalization; international technology differences; tariffs;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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