Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85679
Authors: 
Francois, Joseph
Nelson, Douglas R.
Year of Publication: 
2000
Series/Report no.: 
Tinbergen Institute Discussion Paper 00-065/2
Abstract: 
In this paper we demonstrate that intra-industry trade (or FDI)between identical countries could produce theobserved deterioration in the relative wages of unskilled workers.This involves a model of North-Northintegration through either increased trade flows or increased MNE-based production. Our motivation in this regardis arguments to the effect that trade cannot be responsible for theobserved labour market trends because tradewith developing countries is quantitatively too small to havesignificant labour market effects. We also introduce arelatively unexploited class of model that possesses attractiveproperties with respect to the explicit incorporationof firm-theoretic considerations in trade models.
Subjects: 
trade and wages
trade and employment
FDI and wages
globalization and employment
JEL: 
F16
F15
J31
Document Type: 
Working Paper

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