2013
DOI: 10.1016/j.jinteco.2012.09.003
|View full text |Cite
|
Sign up to set email alerts
|

Heterogeneous trade costs and wage inequality: A model of two globalizations

Abstract: We develop a model for analyzing the distributional effects of two globalizations and their interdependence. We distinguish between two trade cost reductions, (i) trade liberalizations in the 1980s, which increased trade in low-skill-intensive goods (denoted L-Globalization) and (ii) reductions in communication costs due to the IT revolution, which raised trade in middle-skill-intensive goods during the 1990s (denoted C-Globalization). We consider a North-South trade economy in which the North is skill abundan… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1

Citation Types

0
6
0

Year Published

2017
2017
2025
2025

Publication Types

Select...
4
1

Relationship

3
2

Authors

Journals

citations
Cited by 6 publications
(6 citation statements)
references
References 56 publications
0
6
0
Order By: Relevance
“…We study the 1990s because the pattern of North–South trade dramatically changed in those years. As argued in Baldwin (), Blinder () and Basco and Mestieri (), among others, the IT revolution was one of the main drivers of this change . Lastly, our proxy for adoption of IT at the country level is Internet users from WDI (World Bank), which is the most extensive Internet adoption variable available for Southern countries.…”
Section: Introductionmentioning
confidence: 87%
See 1 more Smart Citation
“…We study the 1990s because the pattern of North–South trade dramatically changed in those years. As argued in Baldwin (), Blinder () and Basco and Mestieri (), among others, the IT revolution was one of the main drivers of this change . Lastly, our proxy for adoption of IT at the country level is Internet users from WDI (World Bank), which is the most extensive Internet adoption variable available for Southern countries.…”
Section: Introductionmentioning
confidence: 87%
“…3 See Antràs (2014) for a survey of theoretical and empirical papers emphasizing the role of contractual frictions on the international organization of production. 4 See, for example, Baldwin (2012), Basco and Mestieri (2013) and Antràs and Chor (2013). 5 Our model considers two organizational forms: M&A and 'O-organtization'.…”
mentioning
confidence: 99%
“…The adoption of Information Technologies has been pointed out as one important reason behind the unbundling of production (see, for example, Basco and Mestieri, 2013). Moreover, Autor et al (2003) among others have argued that computerization, by eliminating laborintensive tasks, has also changed the income distribution within countries.…”
Section: Computerizationmentioning
confidence: 99%
“…See, for example,Basco and Mestieri (2013) and the references therein. 8 Other papers that study how trade in goods affect economic growth includeVentura (1997),Bajona and Kehoe (2010),Baxter (1992),Cunat and Maffezzoli (2004) andDeardorff (2001b).…”
mentioning
confidence: 99%
“…The SS theorem has been used to explain why North-South trade can induce an increase in wage inequality (typically measured as the skill premium) in the North. The idea is that, from the North's perspective, trade with Southern countries represents a positive demand shock for skill intensive industries (see, for example, Feenstra and Hanson, 1995, Leamer, 1996, and Basco and Mestieri, 2013. This paper follows this tradition of studying trade and labor inequality through the lens of a factor proportion model.…”
Section: Introductionmentioning
confidence: 99%