This paper develops and evaluates a novel mechanism through which imports of unskilled intermediates (offshoring) increase wages of both skilled and unskilled workers by inducing skill-biased technology adoption and innovation in developed countries. Data for a panel of manufacturing industries in the United States over 1974-2005, strongly support the technology channel with a doubling of offsh...

Available online 26 November 2010 This paper estimates the Heckscher–Ohlin model with annual US data from 1949 to 2006 for outputs of manufactures and services with inputs of fixed capital assets and the labor force. Difference equation and error correction regressions provide estimated coefficients for the comparative static system. Tariffs on manufactures primarily raise the capital return in...

Were the new economic geography forces for industry agglomeration and dispersion at work in the movement of industry in pre-1931 Britain where transport costs were falling? This paper examines the issue empirically using a general model that nests the Heckscher-Ohlin factor endowment with new economic geography models. The evidence suggests that while the location of pre-1931 British industry w...

In this paper, we empirically investigate how the ideology of the government in power a®ects trade policy. The prediction of a partisan, ideology-based model (within a two-sector, two-factor Heckscher-Ohlin framework) is that left-wing governments will adopt more protectionist trade policies in capital rich countries, but adopt more pro-trade policies in labor rich economies than right-wing one...

This paper estimates for 28 product groups a characteristic parameter that reflects the topological structure of its trading network. Using these estimates, it then describes how the structure of international trade has evolved during during the 19802000 period. Thereafter, it demonstrates the importance of networks in international trade by explicitly accounting for their scaling properties wh...

— This paper focuses on the question of whether labor standards can affect comparative advantage in unskilled-labor-intensive goods in developing countries, and thereby influence trade flows. Using a Heckscher–Ohlin framework, the effects of low labor standards depend on the type of standard: Forced and child labor lead to an increase in the endowment of unskilled labor, and hence improve compa...