International Trade, Location and Wage Inequality in China

Songhua Lin

No DP2003-61, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Models of economic geography predict that transportation costs directly affect demand for goods and the supply of intermediate inputs. One of the reasons that international trade is concentrated in the coastal provinces of China is that they have lower transportation costs in transporting goods to other countries than do provinces in the interior. This paper examines the relationship between the provincial wage rate and each province's access to international markets, and to suppliers of intermediate inputs.

Keywords: International trade; Regional economics; Transportation cost; Wage differentials (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (4)

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