Trade and Wage Inequality in Developing Countries: South-South Trade Matters

Julien Gourdon

MPRA Paper from University Library of Munich, Germany

Abstract: The relationship between trade liberalization and inequality has received considerable attention in recent years. The primary purpose of this paper is to present new results on the sources of wage inequalities in manufacturing taking into account South-South (S-S) trade. Globalization not only leads to increasing North-South (N-S) trade, but the direction and composition of trade has also changed. More trade is carried out between developing countries. We observe increasing wage inequality is more due to the South-South trade liberalization than to the classical trade liberalization with northern countries. The second purpose is to elucidate the link between the direction of trade and technological change, arguing that it might explain why we obtain different results for South-South trade and North-South trade on wage inequality. A part of this increasing wage inequality due to S-S trade comes from the development of N-S trade relationship in S-S trade which increases wage inequality in middle income developing countries. However the fact that S-S trade is more skill intensive sector oriented increase wage inequality for all developing countries.

Keywords: International Trade; Wage Inequality; Skill-biased technical change (search for similar items in EconPapers)
JEL-codes: F1 J3 O3 (search for similar items in EconPapers)
Date: 2007-03
New Economics Papers: this item is included in nep-dev, nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/4177/1/MPRA_paper_4177.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/4824/1/MPRA_paper_4824.pdf revised version (application/pdf)

Related works:
Journal Article: Wage inequality in developing countries: South–South trade matters (2011)
Working Paper: Trade and Wage Inequality in Developing Countries: South-South Trade Matter (2011)
Working Paper: Trade and Wage Inequality in Developing Countries: South-South Trade Matter (2011)
Working Paper: Trade and Wage Inequality in Developing Countries: South-South Trade Matter (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:4177

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().