Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap...

We consider the potential influence of contributions from interest groups to political rivals in the voting behavior of US legislators on international trade policy issues. Our application addresses the determinants of the Permanent Normal Trade Relations with China decision, and focuses...

We examine the consequences of opening to international trade for a developing economy with open urban unemployment and rural-urban migration, where the urban sector is monopolistically competitive. We show that there exists a threshold level of urbanization prior to which increases in product...