International Trade Arising from Wage Differences

Sikander Rahim ()
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Sikander Rahim: Former World Bank official.

Lahore Journal of Economics, 2009, vol. 14, issue Special Edition, 135-154

Abstract: This paper analyzes how trade can develop between low and high wage countries when there is free trade and when there is protection. In particular, the paper focuses on Pakistani industrial development from the 1950’s and how standard international trade theory relies on specific assumptions about the nature of capital, which may not hold. This, in turn, has specific implications for industrial policy in low wage countries.

Keywords: International trade; investment; comparative advantage (search for similar items in EconPapers)
JEL-codes: F19 J00 J39 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:lje:journl:v:14:y:2009:i:sp:p:135-154

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