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Author:Wood, A.
Ridao-Cano, C.
Title:Skill, trade, and international inequality
Journal:Oxford Economic Papers
1999 : JAN, VOL. 51:1, p. 89-119
Index terms:Labour
Skills
Trade policy
Growth
Freeterms:Heckscher Ohlin principle
Language:eng
Abstract:Heckscher-Ohlin trade theory suggests that greater openness tends to enlarge inter-country differences in stocks of skill (or human capital), which new growth theory suggests would cause inter-country divergence of per capita incomes. Econometric analysis of data on about 90 countries during the period of 1960-1990 confirms that greater openness tends to cause divergence of secondary and tertiary enrollment rates between more-educated and less-educated countries, and also between land-scarce and land-abundant countries. These findings may have implications for the optimal choice of trade policies by poor countries.
SCIMA record nr: 188027
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