This paper makes a theoretical argument that growth in developing countries is likely to worsen the income distribution in developed countries and lead to a protectionist response that undermines the incentives for developing country growth. The model for this purpose is the two-cone version of...

This paper examines the implications of the Heckscher-Ohlin (HO) Model for the patterns of production and trade that will emerge as a country grows. It focuses primarily on world equilibria that include two or more cones of diversification. Starting with the textbook model of two factors and two...

his paper examines the effects of fragmentation across cones of diversification in the Heckscher-Ohlin model of international trade. Fragmentation is defined as the splitting of production processes into parts that can be done in different countries. Such fragmentation may occur in a world of...

This paper addresses an issue that has received a great deal of attention in recent years, both from international trade economists and from labor economists: What has caused the relative wage of skilled labor compared to unskilled labor in the United States to increase through the 1980s and...

This paper first notes the importance of "one-cone" versus "multi-cones"equilibria in the Heckscher-Ohlin Model of international trade, then asks whether the process of economic growth as modeled in neoclassical growth models tends to lead the world more toward one or the other. The one-cone...

Policies to redistribute income between high- and low-income groups are well known to distort factor supply decisions and thereby to generate deadweight losses incidental to income redistribution. This paper examines the effects that these same distortions may also have on factor supplies...

This paper examines the usefulness of a result of Deardorff and Staiger (1988), who showed that the factor content of trade can be interpreted under certain assumptions as indicating the nature of the factor price adjustments that can, in a specified sense, be attributed to that trade. This...

This paper is the text of a lecture given on November 20, 1997 to inaugurate the John W. Sweetland Chair in International Economics, in the Department of Economics of the University of Michigan. Its message is that international trade theory, and in particular the theory of comparative...

A neoclassical growth model is used to provide an explanation for a "poverty trap," or "club convergence," in terms of specialization and international trade. The model has a large number of countries with access to identical constant-returns-to-scale technologies for producing and trading three...

This paper examines the effects of "fragmentation," defined as the splitting of a production process into two or more steps that can be undertaken in different locations but that lead to the same final product. Introducing the possibility of fragmentation into simple theoretical models of...