IDEAS home Printed from https://ideas.repec.org/p/col/000089/010022.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/8349/dcede2012-28.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Zeira, Joseph, 2007. "Wage inequality, technology, and trade," Journal of Economic Theory, Elsevier, vol. 137(1), pages 79-103, November.
    3. Ripoll, Marla, 2005. "Trade liberalization and the skill premium in developing economies," Journal of Monetary Economics, Elsevier, vol. 52(3), pages 601-619, April.
    4. 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.
    5. Wang, Ming-cheng & Fang, Chen-ray & Huang, Li-hsuan, 2009. "International knowledge spillovers and wage inequality in developing countries," Economic Modelling, Elsevier, vol. 26(6), pages 1208-1214, November.
    6. 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.
    7. 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.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. González-Rozada, Martín & Ruffo, Hernán, 2024. "Do trade agreements contribute to the decline in labor share? Evidence from Latin American countries," World Development, Elsevier, vol. 177(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joshua D Hall, 2017. "Educational Quality Matters for Development: A Model of Trade, Inequality, and Endogenous Growth," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 128-154, January.
    2. Josh Hall, 2009. "Within and Across Country Inequality in a Model of Trade and Endogenous Growth," DEGIT Conference Papers c014_045, DEGIT, Dynamics, Economic Growth, and International Trade.
    3. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    4. Gupta, Manash Ranjan & Dutta, Priya Brata, 2012. "Skilled–unskilled wage inequality, product variety, public input and increasing returns: A static general equilibrium analysis," Economic Modelling, Elsevier, vol. 29(2), pages 502-513.
    5. Andrés O. Dávila & Manuel Fernández & Hernando Zuleta, 2021. "The Natural Resource Boom and The Uneven Fall of The Labor Share," Documentos CEDE 19427, Universidad de los Andes, Facultad de Economía, CEDE.
    6. Hernando Zuleta, 2015. "Factor shares, inequality, and capital flows," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 647-667, October.
    7. Andrew T. Young & Hernando Zuleta, 2016. "Golden Rules of Wages," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 253-270, July.
    8. Pi, Jiancai & Zhou, Yu, 2013. "Institutional quality and skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 356-363.
    9. Dawson, John W. & Sturgill, Brad, 2022. "Market Institutions and Factor Shares Across Countries," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 266-289.
    10. Zuleta, Hernando, 2012. "Variable factor shares, measurement and growth accounting," Economics Letters, Elsevier, vol. 114(1), pages 91-93.
    11. Guimarães, Luís & Mazeda Gil, Pedro, 2022. "Explaining the Labor Share: Automation Vs Labor Market Institutions," Labour Economics, Elsevier, vol. 75(C).
    12. Gupta, Manash Ranjan & Dutta, Priya Brata, 2010. "Skilled-unskilled wage inequality: A general equilibrium analysis," Research in Economics, Elsevier, vol. 64(4), pages 247-263, December.
    13. repec:wvu:wpaper:11-05 is not listed on IDEAS
    14. Gupta Manash Ranjan & Dutta Priya Brata, 2014. "Skilled-Unskilled Wage Inequality, Growth of Skilled Labour and Development Policies," Journal of Globalization and Development, De Gruyter, vol. 5(1), pages 103-128, June.
    15. Zhang, Jingjing, 2013. "Factor mobility and skilled–unskilled wage inequality in the presence of internationally traded product varieties," Economic Modelling, Elsevier, vol. 30(C), pages 579-585.
    16. Priya Brata Dutta & Nirjhar Ghosh, 2021. "Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis," Foreign Trade Review, , vol. 56(4), pages 375-399, November.
    17. Roy Chowdhury, Sahana, 2010. "Technology and outsourcing: An explanation to the rising wage gap," Economic Modelling, Elsevier, vol. 27(1), pages 380-387, January.
    18. Pan, Lijun, 2014. "The impacts of education investment on skilled–unskilled wage inequality and economic development in developing countries," Economic Modelling, Elsevier, vol. 39(C), pages 174-181.
    19. Jiancai Pi & Yu Zhou, 2015. "The impacts of corruption on wage inequality and rural–urban migration in developing countries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 753-768, May.
    20. Gupta, Manash Ranjan & Dutta, Priya Brata, 2010. "Skilled-unskilled wage inequality, nontraded good and endogenous supply of skilled labour: A theoretical analysis," Economic Modelling, Elsevier, vol. 27(5), pages 923-934, September.
    21. Joseph Zeira, 2009. "Why and How Education Affects Economic Growth," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 602-614, August.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000089:010022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Universidad De Los Andes-Cede (email available below). General contact details of provider: https://edirc.repec.org/data/ceandco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.