Khalifa, Sherif - In: Eastern Economic Journal 40 (2014) 2, pp. 249-273
Contrary to the predictions of the 2 × 2 × 2 Heckscher–Ohlin model, empirical evidence shows that trade liberalization causes the skill premium to increase in some developing countries and to decrease in others. This paper develops a North–South model in which complex and simple goods are...