Bonfatti, Roberto; Ghatak, Maitreesh - University <Oxford> / Department of Economics; London … - 2010
An interesting puzzle is that trade liberalization in the 1980s and 1990s has been associated with a sharp increase in … which trade should increase therelative return of the relatively abundant factor. We develop a simple model of trade … withcapital market imperfections, and show that trade can increase the skill premium in boththe North and the South, and both in …