Since the expansion of world trade in the 1980s, measures of inequality have risen not only in developed countries, but also throughout the developing world. This stylized fact is contrary to the predictions of classical trade theory that in countries with high endowments of unskilled labor,...

The purpose of this paper is to evaluate empirically the determinants of innovative activities in emerging countries, with particular attention to national, international and intersectoral knowledge spillovers. Our study concerns 16 emerging and 10 technology source countries, for the period...

The rise in income inequality in developing countries after trade liberalization has been a puzzle for trade theory, which predicts the opposite effect. The authors present a model with imported intermediate goods in which the relative wages of skilled labor can rise due to higher imports of...