Skill Distribution, Trade and Aggregate Income: A Tractable General Equilibrium Model

• 발행기관: 한국무역연구원
• 저자명: 이양승(Yang-Seung Lee)
• 간행물 정보: 『무역연구』제16권 제4호, 21~40쪽, 전체 20쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2020.08.31

영문 초록

Purpose his paper presents a tractable 2-2-2 general-equilibrium model, which provides a unified account for both inter-industry and intra-industry trade. Design/Methodology/Approach We consider trade between two countries, which have the same endowment quantity. For analysis, we incorporate firm heterogeneity into a Heckscher-Ohlin model, and show that trade still occurs although two countries have the same endowment quantity. Within our framework, labor is heterogeneous in skill, and the heterogeneity determines effective factor prices like in Leamer (1999). There are two sectors, the primary sector (independent on institution) under perfect competition and the manufactured sector (dependent on institution) under monopolistic competition. Findings In the manufactured sector, firms of lower-skill workers cannot produce. Due to firm selection, unskilled workers move to the primary sector. The manufactured sector expands when the country is abundant in high-skill workers. In this case, the primary sector has comparative disadvantage in the country because the primary sector absorbs high-skill workers and raises the wage for the primary sector. In a country being relatively abundant in high-skill workers, the size of the manufactured sector is larger. Then, the country exports more varieties, imports less varieties (two-way trade), and has more well-paying jobs than another country, which has comparative advantage in the primary sector. Due to comparative advantage, the primary good is exported from one country to another (one-way trade). Research Implications Trade equalizes the prices of the primary good and the sectoral wage between countries. Aggregate price level is the same for both countries. However, aggregate income is larger in the country, where is relatively abundant of skills, because well-paying jobs are more available. With providing a new framework, our paper can contribute to the literature of skill distribution and trade, or North-North trade.

목차

Ⅰ. Introduction

Ⅱ. Model

Ⅲ. Autarky Equilibrium

Ⅳ. Trade Equilibrium with Symmetric Countries

Ⅴ. Trade Equilibrium with Asymmetric Countries

Ⅵ. Conclusion

References

키워드

Aggregate Income Factor Endowment Differentiated Products Institutional Quality Skill Distribution