This paper investigates how trade openness affects wage inequality of trading countries, both within and between them. Specifically, based on the theoretical literature on monopolistic competition between two asymmetric countries, we derive a new framework under the assumption of endogenous...

In this paper, we theoretically investigate the role of technology level in Global Value Chain (GVC) formation from two aspects: position and participation volume. We develop a simple two-country model where countries are heterogeneous with respect to their technology level and labor force. In...