Can the HOSS framework help shed light on the simultaneous growth of inequality and informalization in developing countries?/
Razmi, Arslan
Can the HOSS framework help shed light on the simultaneous growth of inequality and informalization in developing countries?/ created by Arslan Razmi - Review of world economics Volume 145, number 2 .
Using simple, modified versions of the factor proportions framework, and focusing on structural features within developing economies, this paper attempts to reconcile puzzling developments observed in many post-reform, post-liberalization countries whereby increasing income inequality has emerged side-by-side with informalization of the economy. Measures undertaken to enhance public sector efficiency and attract investment in an import-intensive export sector may increase rental–wage and skilled–unskilled wage gaps, contra the predictions of the simple Heckscher–Ohlin–Stolper–Samuelson (HOSS) framework regarding skill- and capital-scarce countries. The common thread generating our interesting results is the presence of sectors that are even more labor-intensive than those producing traded goods.
16102878
Heckscher–Ohlin–Stolper–Samuelson theory--International production networks--Developing countries--Elasticity of factor substitution
HF135 REV
Can the HOSS framework help shed light on the simultaneous growth of inequality and informalization in developing countries?/ created by Arslan Razmi - Review of world economics Volume 145, number 2 .
Using simple, modified versions of the factor proportions framework, and focusing on structural features within developing economies, this paper attempts to reconcile puzzling developments observed in many post-reform, post-liberalization countries whereby increasing income inequality has emerged side-by-side with informalization of the economy. Measures undertaken to enhance public sector efficiency and attract investment in an import-intensive export sector may increase rental–wage and skilled–unskilled wage gaps, contra the predictions of the simple Heckscher–Ohlin–Stolper–Samuelson (HOSS) framework regarding skill- and capital-scarce countries. The common thread generating our interesting results is the presence of sectors that are even more labor-intensive than those producing traded goods.
16102878
Heckscher–Ohlin–Stolper–Samuelson theory--International production networks--Developing countries--Elasticity of factor substitution
HF135 REV