Division of labor models have become a standard analytical tool, along with competitive general equilibrium models (Ricardian, HOS, Ricardo Viner), in public finance, trade, growth, development and macroeconomics. Yet unlike the earlier models, specialization models lack a canonical...

Our focus is a preliminary investigation of the link between democratic politics and the stability of globalization in three steps. First, we briefly develop two key distinctions that provide an analytical framework for our discussion. Specifically, we argue that most of the literature on...

Trade reform creates winners and losers. When the median voter loses from reform, free trade is blocked. Allowing the electorate to vote for compensatory wage or employment subsidies may lead to free trade under these circumstances. However, placing compensation on the agenda may also lead to an...

In this paper we analyze the effects of global and national technological change on employment levels and relative wages in an integrated two-country world ("Europe" and "America"), where both countries are characterized by equilibrium unemployment due to fair wage constraints. The asymmetry...

We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North by developing the basic linkages between trade-based integration and relative wages in an Ethier-type division of labor model. Using this model we identify a formal relationship between...

Books reviewed: Tran Van Hoa and Charles Harvie, The Causes and Impact of the Asian Financial Crisis V.N. Balasubramanyan, Conversations with Indian Economists Taketoshi Ito and Anne Krueger, The Role of Foreign Direct Investment in East Asian Economic Development Kenneth Schreve and Matthew...

Geo-economic tensions and global collective action problems call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to cross-border competition spillover effects. Current WTO rules that divide all subsidies into...

Negative international spillovers created by nontariff policies are a rising source of trade tensions and conflicts. The WTO does not include rules for subsidies for services industries, state-owned enterprises or investment incentives. Existing disciplines on industrial policies are...