Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods

Autores
Galiani, Sebastian; Heymann, Carlos Daniel; Magud, Nicolas E.
Año de publicación
2017
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
We return to the traditional theme of the distributive consequences of international prices and trade policies, focusing on economies relatively abundant in natural resources with a large non-tradable-goods sector. Changes in international prices create an aggregate demand effect which impacts on the earnings of factors employed in the non-traded goods sector. We show that, in economies highly specialized in the production of tradable goods and where the import-competing sector is small, under standard assumptions, terms-of- trade shifts have a neutral effect on factor prices and thus lack distributive effects, quite differently from Stolper-Samuelson scenarios. In economies with sizable import-competing sectors and two ?urban? productive factors (e.g. skilled and unskilled labor), changes in the terms of trade do induce distributional tensions through two channels: (i) the exogenous shift in the relative price of tradable goods, and (ii) the endogenous displacement of the demand for non-tradables. We illustrate how, according to the structure of the economy, different patterns of income distribution may arise. Next, we analyze the introduction of trade duties. Trade taxes change relative prices between tradable goods as a terms-of-trade shock does, but also introduce an additional demand mechanism, that depends on the use the government gives to the revenues. If the tax revenues are transferred back to the private sector, the resulting reallocation of spending favors those factors used intensively in the production of non-tradables.
Fil: Galiani, Sebastian. University of Maryland; Estados Unidos
Fil: Heymann, Carlos Daniel. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Politica de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Politica de Buenos Aires; Argentina
Fil: Magud, Nicolas E.. International Monetary Fund.; Estados Unidos
Materia
Income distribution
Stolper-Samuelson effects
International trade
Non-tradable goods
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/33803

id CONICETDig_9d3c9471c0a9ef9de39f459761273fe5
oai_identifier_str oai:ri.conicet.gov.ar:11336/33803
network_acronym_str CONICETDig
repository_id_str 3498
network_name_str CONICET Digital (CONICET)
spelling Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable GoodsGaliani, SebastianHeymann, Carlos DanielMagud, Nicolas E.Income distributionStolper-Samuelson effectsInternational tradeNon-tradable goodshttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5We return to the traditional theme of the distributive consequences of international prices and trade policies, focusing on economies relatively abundant in natural resources with a large non-tradable-goods sector. Changes in international prices create an aggregate demand effect which impacts on the earnings of factors employed in the non-traded goods sector. We show that, in economies highly specialized in the production of tradable goods and where the import-competing sector is small, under standard assumptions, terms-of- trade shifts have a neutral effect on factor prices and thus lack distributive effects, quite differently from Stolper-Samuelson scenarios. In economies with sizable import-competing sectors and two ?urban? productive factors (e.g. skilled and unskilled labor), changes in the terms of trade do induce distributional tensions through two channels: (i) the exogenous shift in the relative price of tradable goods, and (ii) the endogenous displacement of the demand for non-tradables. We illustrate how, according to the structure of the economy, different patterns of income distribution may arise. Next, we analyze the introduction of trade duties. Trade taxes change relative prices between tradable goods as a terms-of-trade shock does, but also introduce an additional demand mechanism, that depends on the use the government gives to the revenues. If the tax revenues are transferred back to the private sector, the resulting reallocation of spending favors those factors used intensively in the production of non-tradables.Fil: Galiani, Sebastian. University of Maryland; Estados UnidosFil: Heymann, Carlos Daniel. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Politica de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Politica de Buenos Aires; ArgentinaFil: Magud, Nicolas E.. International Monetary Fund.; Estados UnidosDe Gruyter2017-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/33803Galiani, Sebastian; Heymann, Carlos Daniel; Magud, Nicolas E.; Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods; De Gruyter; Journal of Globalization and Development; 8; 1; 1-2017; 1-31; 201600281948-1837CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.degruyter.com/view/j/jgd.2017.8.issue-1/jgd-2016-0028/jgd-2016-0028.xmlinfo:eu-repo/semantics/altIdentifier/doi/10.1515/jgd-2016-0028info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-10-22T11:28:40Zoai:ri.conicet.gov.ar:11336/33803instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-10-22 11:28:40.72CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
title Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
spellingShingle Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
Galiani, Sebastian
Income distribution
Stolper-Samuelson effects
International trade
Non-tradable goods
title_short Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
title_full Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
title_fullStr Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
title_full_unstemmed Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
title_sort Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods
dc.creator.none.fl_str_mv Galiani, Sebastian
Heymann, Carlos Daniel
Magud, Nicolas E.
author Galiani, Sebastian
author_facet Galiani, Sebastian
Heymann, Carlos Daniel
Magud, Nicolas E.
author_role author
author2 Heymann, Carlos Daniel
Magud, Nicolas E.
author2_role author
author
dc.subject.none.fl_str_mv Income distribution
Stolper-Samuelson effects
International trade
Non-tradable goods
topic Income distribution
Stolper-Samuelson effects
International trade
Non-tradable goods
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv We return to the traditional theme of the distributive consequences of international prices and trade policies, focusing on economies relatively abundant in natural resources with a large non-tradable-goods sector. Changes in international prices create an aggregate demand effect which impacts on the earnings of factors employed in the non-traded goods sector. We show that, in economies highly specialized in the production of tradable goods and where the import-competing sector is small, under standard assumptions, terms-of- trade shifts have a neutral effect on factor prices and thus lack distributive effects, quite differently from Stolper-Samuelson scenarios. In economies with sizable import-competing sectors and two ?urban? productive factors (e.g. skilled and unskilled labor), changes in the terms of trade do induce distributional tensions through two channels: (i) the exogenous shift in the relative price of tradable goods, and (ii) the endogenous displacement of the demand for non-tradables. We illustrate how, according to the structure of the economy, different patterns of income distribution may arise. Next, we analyze the introduction of trade duties. Trade taxes change relative prices between tradable goods as a terms-of-trade shock does, but also introduce an additional demand mechanism, that depends on the use the government gives to the revenues. If the tax revenues are transferred back to the private sector, the resulting reallocation of spending favors those factors used intensively in the production of non-tradables.
Fil: Galiani, Sebastian. University of Maryland; Estados Unidos
Fil: Heymann, Carlos Daniel. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Saavedra 15. Instituto Interdisciplinario de Economía Politica de Buenos Aires. Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Politica de Buenos Aires; Argentina
Fil: Magud, Nicolas E.. International Monetary Fund.; Estados Unidos
description We return to the traditional theme of the distributive consequences of international prices and trade policies, focusing on economies relatively abundant in natural resources with a large non-tradable-goods sector. Changes in international prices create an aggregate demand effect which impacts on the earnings of factors employed in the non-traded goods sector. We show that, in economies highly specialized in the production of tradable goods and where the import-competing sector is small, under standard assumptions, terms-of- trade shifts have a neutral effect on factor prices and thus lack distributive effects, quite differently from Stolper-Samuelson scenarios. In economies with sizable import-competing sectors and two ?urban? productive factors (e.g. skilled and unskilled labor), changes in the terms of trade do induce distributional tensions through two channels: (i) the exogenous shift in the relative price of tradable goods, and (ii) the endogenous displacement of the demand for non-tradables. We illustrate how, according to the structure of the economy, different patterns of income distribution may arise. Next, we analyze the introduction of trade duties. Trade taxes change relative prices between tradable goods as a terms-of-trade shock does, but also introduce an additional demand mechanism, that depends on the use the government gives to the revenues. If the tax revenues are transferred back to the private sector, the resulting reallocation of spending favors those factors used intensively in the production of non-tradables.
publishDate 2017
dc.date.none.fl_str_mv 2017-01
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/33803
Galiani, Sebastian; Heymann, Carlos Daniel; Magud, Nicolas E.; Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods; De Gruyter; Journal of Globalization and Development; 8; 1; 1-2017; 1-31; 20160028
1948-1837
CONICET Digital
CONICET
url http://hdl.handle.net/11336/33803
identifier_str_mv Galiani, Sebastian; Heymann, Carlos Daniel; Magud, Nicolas E.; Income Distribution, Factor Endowments, and Trade Revisited: The Role of Non-Tradable Goods; De Gruyter; Journal of Globalization and Development; 8; 1; 1-2017; 1-31; 20160028
1948-1837
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.degruyter.com/view/j/jgd.2017.8.issue-1/jgd-2016-0028/jgd-2016-0028.xml
info:eu-repo/semantics/altIdentifier/doi/10.1515/jgd-2016-0028
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv De Gruyter
publisher.none.fl_str_mv De Gruyter
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
_version_ 1846781866850385920
score 12.982451