This paper reconsiders the welfare effects of tariff jumping direct investment if mobile capital is subjected to taxation. In contrast to the conventional wisdom, the receiving country may in this case gain from the incremental inflow of capital, as this diverts tax revenues from the rest of the...

In this paper we examine the impact of international trade on the absolute and relative wages of educated and less-educated workers in Canada over 1993-96. We show that after correcting for the relative supply effect of educated to less educated workers the wage differential would have been on...

Recent trade negotiations, both at the regional and multilateral level, have seen a resurgence of the issue of trade and labour standards. As the world economy becomes increasingly globalised and the volume of world trade flows keeps increasing between the North and the South, it is very likely...

This study is motivated by frequent calls to harmonize labor standards across countries, which result from the fear that economic integration (and the accompanying liberalization of trade flows) will lead to an erosion of working conditions, as countries deliberately try to reduce labor...

Tax competition poses two problems for international cooperation: defection and distributive conflict. Multilateral cooperation to stop tax competition may fail because states face incentives to renege on their promises or because they face adverse distributional consequences, either of which...

The paper considers the trade and wages debate, and proposes two alternative explanations to explain the rising wage differential (relative wage of the skilled vs. the unskilled), other than the conventional Stolper-Samuelson explanation. The first is an explanation dubbed kaleidoscopic...