MIDDLEMEN MARGINS AND GLOBALIZATION

Dilip Mookherjee, Pranab Bardhan and Masatoshi Tsumagari (tsuma@econ.keio.ac.jp)
Additional contact information
Masatoshi Tsumagari: Department of Economics, Keio University

No WP2011-034, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics

Abstract: We provide a competitive theory of middlemen or entrepreneurs who develop brand-name reputations necessary to overcome product quality moral hazard problems, embedded in a Heckscher-Ohlin model of North-South trade. Agents with heterogeneous entrepreneurial abil- ities sort into different sectors and occupations, with endogenous inter- sectoral mobility. In some contexts competitive equilibrium is charac- terized by restricted inter-sectoral mobility; bene ts of trade liberal- ization in the South accrue disproportionately to middlemen, North- South factor price differences grow, and offshoring reduces inequality in the South. In other contexts there is enough mobility; classical Stolper-Samuelson and factor price equalization results hold.

Keywords: middlemen; reputation; inequality; trade liberalization; North-South trade (search for similar items in EconPapers)
JEL-codes: D33 F12 F13 F21 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2011-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

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

Related works:
Journal Article: Middlemen Margins and Globalization (2013)
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:bos:wpaper:wp2011-034

Access Statistics for this paper

More papers in Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Program Coordinator (iedcoord@bu.edu).