Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70304
Authors: 
Wagner, Martin
Year of Publication: 
1999
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 66
Abstract: 
A 2-country model with two groups of agents, workers and capitalists is presented in which economic integration results in an initial phase of catch-up, where the less industrialised country experiences the rise in both capital and labour income. Then, after a certain level of integration has been reached, the less industrialised country is completely de-industrialised. This has detrimental effects on the income of this country's workers, but the capital owners of this country gain from specialisation, as do the workers in the industrialised country. Both the capital and the goods markets are subject to imperfections. The structure of the equilibrium sets during integration is characterised completely.
Subjects: 
globalisation
trade
market imperfections
integration
JEL: 
F12
F15
Document Type: 
Working Paper

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