The Labour Market Effects of International Trade in the Presence of Vertical Product Differentiation: Some Methodological Remarks in Retrospect

The paper retrospectively analyses the issue of impact international trade on developed countries’ labour markets in 1990s, when majority academic opinion denied role misfortunes unskilled workers. An analytical framework is proposed which intra-industry explained terms factor endowments and intensities goods. Unlike traditional Heckscher–Ohlin model inter-industry trade, suggested here more consistent with stylised facts about North–South trade. also proposes a method for empirically assessing substitution effects at product level. Inferring content from inter-sectoral relationship between intensity average unit values exports, found that market add significantly to estimated