International Trade, Wage Inequality and the Developing Economy: A General Equilibrium Approach / Edition 1

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This book deals with the impact that international trade is likely to have on the skilled-unskilled wage gap in a typical developing economy. This is the first theoretical monograph on this particular issue which has already generated substantial debate and voluminous work for the developed countries. A unique feature of this work is that it tries to explain the possibility of rising inequality across trading nations and looks at the segmented labour markets of the poor economies. It makes convincing arguments that the standard general equilibrium models, the main workhorse of trade theory, can be given a creative facelift to address a number of critical and emerging issues in the area of trade and development.

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Editorial Reviews

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"The book … explores the analytical borders of the standard trade model and shows how various modifications, motivated by a developing country (DC) perspective, can indeed reconcile the theory with the presumed facts. … I find the book by Marjit and Acharyya to be a very helpful contribution to the literature … . Apart from its obvious usefulness as a text for advanced courses on trade theory … the book may also serve as a useful source of inspiration for researchers … ." (Erich Gundlach, Review of World Economics, Vol. 140 (2), 2004)

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Product Details

  • ISBN-13: 9783790800319
  • Publisher: Physica-Verlag HD
  • Publication date: 7/29/2003
  • Series: Contributions to Economics Series
  • Edition description: Softcover reprint of the original 1st ed. 2003
  • Edition number: 1
  • Pages: 176
  • Product dimensions: 0.42 (w) x 6.14 (h) x 9.21 (d)

Table of Contents

Introduction.- Part I: Evidence and the Debate: Wages and Employment.- Part II: Explaining Symmetric Wage-Gap: The Standard Trade Theory: How Far Does It Go?; Trade Liberalization and Symmetric Wage-Gap; Input Trade: An Alternative Explanation.- Part III: Trade, Capital Flow and Employment: Liberalization and Employment in the Organized Sector.- Part IV: Trade Liberalization, Wage Inequality and Employment in the South: Diverse Trade Pattern, Complementarity and Fragmentation; Segmented Input Markets and Non-Traded Good; Trade, Skill Formation and the Wage-Gap.- Conclusion.

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