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This paper develops a model of trade that features heterogeneous firms, technology choice and different types of … skilled labor in a general equilibrium framework. Its main contribution is to explain the impact of trade integration on … puzzling increase in skill premium in the developing countries. The key mechanism is found in the effects of trade policy on …
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elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada …-US interregional trade data, we structurally estimate a theory-based gravity equation system featuring endogenous wages and … absolute wage effects, and a selection effect. We then quantify the impacts of removing the trade distortions generated by the …
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A central argument for trade liberalization is that when the "gains from trade" are shared, countries see large gains … regional development. Africa provides a unique study ground because the arbitrary placement of country borders during the … credible instrument for bilateral trade flows and enable the assignment of trade flows ---and their impacts--- to individuals …
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