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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. |
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