This page last changed on 27 Nov 2009 by msra7rh2.

Deardorff and Hakura (1994) state that it is just as reliable to describe international trade occurring as a result of wage differences as it is to say international trade affects wage changes within each country.

They look at the difference between earned incomes both before and after the removal of a trade protection. However, this in practice is difficult to measure. In addition to this, they look at how changes in economic conditions in country B have affected the distribution on wages in country A. Without the trading relationship brought about by international trade, progress in country B would have a smaller affect on the earnings distribution in country A.

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