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
- Institución
- Consejo Nacional de Investigaciones Científicas y Técnicas
- OAI Identificador
- oai:ri.conicet.gov.ar:11336/33803
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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 |
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CONICET Digital (CONICET) |
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Consejo Nacional de Investigaciones Científicas y Técnicas |
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CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas |
repository.mail.fl_str_mv |
dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar |
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1846781866850385920 |
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12.982451 |