This paper takes seriously the idea that international trade has played an important role in explaining both some convergence between developed economies as well as rising inequalities at the personal level. Previous studies used traditional trade theory as a reference framework. The empirical...

Using the idea that the division of labor is limited not only by the extent of the market but also by its heterogeneity, it is proposed in this paper that ''globalisation'' is redrawing the lines of division within and between countries. Our model builds on the concept of productive systems. Our...

In this paper we introduce the concept of productive systems. Assuming a complementarity between skills and technology (more ''complex'' technologies are intrinsically more productive but they require a more skilled labour force) and gains from the division of labor, firms face a trade-off...