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Low-wage competition: pains from trade for medium-wage countries.
- Source :
-
Journal of International Trade & Economic Development . Aug2022, Vol. 31 Issue 5, p742-758. 17p. 1 Chart. - Publication Year :
- 2022
-
Abstract
- 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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09638199
- Volume :
- 31
- Issue :
- 5
- Database :
- Academic Search Index
- Journal :
- Journal of International Trade & Economic Development
- Publication Type :
- Academic Journal
- Accession number :
- 157843724
- Full Text :
- https://doi.org/10.1080/09638199.2021.2016897