1.12 Costs of being wrong -- 2 Theoretical Framework -- 2.1 A skill-based model of North- South trade -- 2.1.1 Initial sketch -- 2.1.2 Relative factor price convergence -- 2.1.3 Transport costs -- 2.1.4 Land -- 2.2 Capital -- 2.2.1 Nature of capital...
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1.12 Costs of being wrong -- 2 Theoretical Framework -- 2.1 A skill-based model of North- South trade -- 2.1.1 Initial sketch -- 2.1.2 Relative factor price convergence -- 2.1.3 Transport costs -- 2.1.4 Land -- 2.2 Capital -- 2.2.1 Nature of capital -- 2.2.2 Nontraded capital goods -- 2.2.3 Scarcity and profitability -- 2.2.4 Comparative advantage and capital intensity -- 2.3 Knowledge, skill, and technology -- 2.3.1 Heckscher- Ohlin assumptions -- 2.3.2 Direct and indirect skill -- 2.3.3 Ricardian theory reinterpreted -- 2.4 Skill further considered -- 2.4.1 Common denominators of skill. 2.4.2 Skill categories -- 2.4.3 Skill formation -- 2.4.4 International labour mobility -- 2.5 Wage determination -- 2.5.1 Relative wages -- 2.5.2 Real wages -- 2.6 Summary -- Part A: Patterns and Magnitudes -- Introduction -- 3 Evidence from Previous Studies -- 3.1 Factor content methodology -- 3.2 Disentangling skill and capital -- 3.3 Studies of the South -- 3.4 Studies of the North -- 3.5 Joint North- South studies -- 3.6 Summary -- 4 Factor Content of Noncompeting Trade -- 4.1 Methodology -- 4.2 Factor content coefficients -- 4.3 Output effects -- 4.4 Impact on factor demand -- 4.5 Summary. 7.3 Another explanation: new technology -- 7.4 Summary -- 8 Unemployment in the North -- 8.1 Alternative explanations -- 8.2 Evidence on mismatch -- 8.3 Cross-country variation -- 8.4 Summary -- Part C: Prospects and Policies -- Introduction -- 9 Past and Future -- 9.1 General approach -- 9.2 Trade barrier reductions -- 9.3 Skill supply changes -- 9.4 Summary -- 10 Policy Options for the North -- 10.1 Problems and possibilities -- 10.2 Motives for intervention -- 10.3 Policy instruments -- 10.4 Alternative policy packages -- 10.5 Costs of being wrong -- 10.6 Summary -- Appendices. Expansion of trade in manufactures between developed and developing countries has had a far greater effect on labour markets than earlier research suggested. This book examines the issues Part B: Causes and Consequences -- Introduction -- 5 Trade Shifts and Sectoral Side-Effects -- 5.1 Causes of change in North- South trade -- 5.2 Wage and employment effects -- 5.3 Sectoral consequences in the South -- 5.4 Sectoral consequences in the North -- 5.5 Summary -- 6 Skill Differentials and Inequality in the South -- 6.1 Theoretical considerations -- 6.2 Changes in income inequality -- 6.3 Time-series case studies -- 6.4 Summary -- 7 Skill Differentials and Inequality in the North -- 7.1 Trends in skill differentials -- 7.2 Consistency of the trade explanation. Preface -- Acknowledgements -- Contents -- List of Figures -- List of Tables -- 1 Summary and Conclusions -- 1.1 Trends and disputes -- 1.2 Skill as the basis of North- South trade -- 1.3 Causes of the change in North- South trade -- 1.4 Size of the impact on labour markets -- 1.5 Sectoral effects of the change in trade -- 1.6 Skill differentials and inequality in the South -- 1.7 Skill differentials and inequality in the North -- 1.8 Unemployment in the North -- 1.9 Will the future be like the past? -- 1.10 Policy implications in the South -- 1.11 Policy implications in the North.
