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"Mexico's experience before and after trade liberalization presents a challenge to neoclassical trade theory. Though labor abundant, it nevertheless exported skill-intensive goods and protected labor-intensive sectors prior to liberalization. Post-liberalization, the relative wage of skilled workers rose. Courant and Deardorff (1992) have shown theoretically that an extremely uneven distribution of factors within a country can induce behavior at odds with overall comparative advantage. We demonstrate the importance of this insight for developing countries. We show that Mexican regions exhibit substantial variation in skill abundance, offer significantly different relative factor rewards, and produce disjoint sets of industries. This heterogeneity helps to both undermine Mexico's aggregate labor abundance and motivate behavior that is more consistent with relative skill abundance"--National Bureau of Economic Research web site.
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Subjects
Economic conditions, Economic development, Free trade, Income distribution, Labor supply, MexicoPlaces
MexicoTimes
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Is Mexico a lumpy country?
2004, National Bureau of Economic Research
Electronic resource
in English
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Book Details
Edition Notes
"November 2004."
Includes bibliographical references.
Also available in PDF from the NBER world wide web site (www.nber.org).
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- Created September 29, 2008
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December 15, 2009 | Edited by WorkBot | link works |
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September 29, 2008 | Created by ImportBot | Imported from Oregon Libraries MARC record |