This paper sets up a new economic geography model with diminishing marginal returns and examines the effect of capital liberalization on industrial agglomeration and wage inequality. The simulation results indicate that for the country with strict capital controls, capital liberalization can...

This paper estimates nonlinear structural wage equations derived from NEG model with data on 327 cities in China. The estimation results show that the variation of wage level across cities in China is associated with proximity to large markets. The estimated elasticity of substitution of China...

Thesis (Ph.D.)--University of Hawaii at Manoa, 2008.

This paper focuses on the decomposition of observed increases in UK wage inequality since 1979 into the component factors of competition from low-wage imports and technological change. Building on recent work by Abrego and Whalley, it argues that the length of production run and degree of .xity...

This paper discusses the results from general equilibrium trade models executed towards the end of the Uruguay Round, reporting both aggregate and regional gains. These results were generated some 5 years ago, and were important to the debates at the end of the Uruguay Round as to what would be...

We explore the implications of trade liberalization in economies with State Owned enterprises (SOEs) and shirking. SOEs are modelled as controlled by the members of the enterprise who determine output and effort levels, while facing output prices and wage rates set by government. Enterprise...

This paper discusses what the next few decades could bring for the developing countries in terms of the size and composition of their trade and inward investment flows, as well as a possibly changing policy framework within the global economy in which they have to operate. Both the prospects and...

This paper explores the use of structural models as an alternative to reduced form methods when decomposing observed joint trade and technology driven wage changes into components attributable to each source. Conventional mobile factors Heckscher-Ohlin models typically reveal problems of...

This paper focuses on the causes of increased wage inequality in OECD countries in recent years and its decomposition into the component factors of trade surges in low wage products and technological change that has preoccupied the trade and wages literature. It .argues that the length of...

Existing literature ignores adaptation responses to external effects which, in turn, affect the design of appropriate internalization instruments. We use general equilibrium numerical simulation models based on OECD and UK data to analyze the significance of these responses to congestion...