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 co...

The rising inequality of income distribution has attracted world’s attention since Krugman [2007] criticized the rising inequality in the U.S. especially after the 1980s. This phenomenon became well known worldwide when “Occupy Wall Street” movement broke out in 2011, and has been discussed in Stiglitz [2012] and Piketty [2013]. It must be noted, first, that their analysis is econometric or pol...

Abstract T his paper explains bilateral trade patterns between South Korea and thirteen OPEC member countries over the period 1980-2014 using a gravity model. The estimation results show that the gravity equation fits the data reasonably well. We confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - ...

abstract t his paper explains bilateral trade patterns between south korea and thirteen opec member countries over the period 1980-2014 using a gravity model. the estimation results show that the gravity equation fits the data reasonably well. we confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - gdp, income (gdp per c...

This paper develops a new model with heterogeneous firms under perfect competition in Heckscher-Ohlin setting. We derive novel prediction regarding the effect of minimum wages on selection, namely that binding wage will raise (or lower) TFP at firm and industry level depending whether capital intensity entry costs exceeds (falls short of) production. Exploiting rich regional variation across Ch...

Motivated by increasing trade and fragmentation of production across countries, accompanied income convergence many emerging economies, we build a dynamic two-country model featuring sequential, multi-stage capital accumulation. As costs decline over time, global-value-chain (GVC) expands particularly more in the faster-growing country, consistent with empirical pattern. Via Heckscher–Ohlin for...