Quality, Trade and the Moving Window: The Globalisation Process

John Sutton

Economic Journal, 2007, vol. 117, issue 524, F469-F498

Abstract: The globalisation process is analysed in a model where firms differ in productivity and quality. A lower bound to quality emerges, below which firms cannot sell, however low their (local) wage rate. The range of quality levels between the maximum and this lower bound shifts upwards when trade is liberalised (the 'moving window'). The initial phase of globalisation, associated with trade liberalisation, in an initially segmented (but not autarkic) world, may reduce welfare in countries with intermediate levels of capability, but these countries may be the most important gainers as capabilities are transferred in subsequent phases. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (95)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:ecj:econjl:v:117:y:2007:i:524:p:f469-f498

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().