Tuesday, May 22, 2012

n firms... m tradeables... 2 countries

http://www.voxeu.org/index.php?q=node/8013

this is a lord high practicers' attempt to measure
                  the impact of exports on wage distribution
it has a lapidary finding

inequality rise as exports open up peaks and falls back
as more and more firms join the export game

basically "as is" this appears to be completely useless
after all what about import invasions ?

imports ... more often then not ... rise with exports
open up an economy and much changes

this study really amounts to building a few rooms on one  wing
and then trying to   play  the role of a complete  mansion

what seems important here to me is the explicit modeling of heterogenious firms
whats missing besides the other side of the exchange ie import impact
is the role of essentially non patriotic multi national firms
in the development of modern globalization

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