The effects of trade among similar countries and that among dissimilar countries on the relative wage are examined. Product quality is a choice variable by firms. Quantity production is assumed to satisfy constant costs, while quality production is more skilled-labor intensive than quantity...

This paper investigates the effects of gradual trade liberalization on intra-country and inter-country inequality. It assumes two countries, North and South, and two factors, skilled labour and unskilled labour. North is defined as the one that is relatively skilled-labour abundant and larger. A...