Trade liberalization, wage inequality, and endogenously determined nontraded goods

• 成果类型: Article
• 署名作者: Xu, B
• 署名单位: State University System of Florida; University of Florida
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(02)00049-1
• 发表日期: 2003
• 页码: 417-431
• 关键词: trade liberalization; wage inequality; Nontraded goods

摘要

We examine the boundary between traded and nontraded goods as a channel for trade to impact factor prices. In a two-country, two-factor, continuum-good model, tariffs generate a range of nontraded goods. A tariff reduction has a direct effect to expand a country's import set and an indirect effect through terms of trade to expand its export set. We show that the export expansion can dominate the import expansion, raising the relative demand for the factor intensively used in production. The result is useful in explaining observed rising wage inequality in developing countries following trade liberalization. (C) 2002 Elsevier Science B.V. All rights reserved.