Arnold, Lutz G. and Heyna, Michael (2022) Low-wage competition: pains from trade for medium-wage countries. JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT, 31 (5). pp. 742-758. ISSN 0963-8199, 1469-9559
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The entry of a low-wage country into a world economy with preexisting wage differentials puts the gains from trade in a former low-wage and then medium-wage country under pressure. If negotiations over the formation of a free trade area cover international transfers, there is a strong presumption that they bring about global free trade and compensation of the medium-wage country if necessary. In the absence of international transfers, by contrast, the medium-wage country is not compensated when global free trade causes a reduction in its gains from trade, and it may even happen that it is not part of the equilibrium free trade area.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | NORTH-SOUTH TRADE; MODEL; INNOVATION; gains from trade; low-wage competition; North-South trade; free trade area; core; wage inequality |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Theoretische Volkswirtschaft (Prof. Dr. Lutz Arnold) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 07 Feb 2024 07:03 |
| Last Modified: | 07 Feb 2024 07:03 |
| URI: | https://pred.uni-regensburg.de/id/eprint/56585 |
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