Foreign Competition and Wage Inequality
By J. Peter. 2002
123 citations recorded by the source corpus.
The author argues that increased foreign competition can affect technical choice and skill differentials even when actual imports do not rise significantly. A model is presented of general oligopolistic equilibrium (GOLE) in which a reduction in import barriers (whether technological or policy-imposed) encourages more strategic investment by incumbent firms. The predictions accord with many of the stylized facts: higher skill premia; higher ratios of skilled to unskilled workers employed in all sectors and throughout the economy; little change in import volumes or prices; and rapid technological progress with rather little change in total factor productivity. Copyright 2002 by Blackwell Publishing Ltd.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/7b62b440e03f8ad5abfb48bfc8dcef9ce8cf0d33
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In Economics and Econometrics
Citations in the corpus
- The Skill Bias of World Trade (2002, unknown): “Neary (2002) and Thoenig and Verdier (2003) develop models where trade liberalisation between similar countries can lead to skill-biased technical change.”
- International Trade in General Oligopolistic Equilibrium (2016, unknown): “I have already explored in a simplified version of the model the implications for the effects of trade on income inequality of having more than one factor of production and of allowing firms to engage in entry-preventing behavior (see Neary, 2002a).”
- Foreign Direct Investment and the Single Market (2002, unknown): “It is shown in Neary (2002) that, if demands are generated by a symmetric quadratic utility function with substitutability parameter e, then ε and e are related as follows: ε=e/[1+(n−1)e].”
- GLOBALIZATION AND MARKET STRUCTURE (2003, methodology): “I have shown in Neary (2002a) that the strategic effect is increasing in the number of incumbent domestic firms in Cournot competition.”