Skill, Trade and International Inequality

IDS Working Paper No. 47

Posted: 23 May 1997

See all articles by Adrian Wood

Adrian Wood

University of Oxford

Cristobal Ridao-Cano

World Bank - Development Research Group (DECRG)

Date Written: December 1996

Abstract

Heckscher-Ohlin trade theory suggests that greater openness enlarges inter-country differences in stocks of skill (or human capital), which new growth theory suggests would cause inter-country divergence of per capita incomes. Econometric analysis of data on about 90 countries during 1960-90 confirms that greater openness tends to cause divergence of secondary and tertiary enrollment rates between more-educated and less-educated countries, and also between land-scarce and land-abundant countries. These findings may have implications for the optimal choice of trade policy by poor countries.

JEL Classification: F15, F41, O19

Suggested Citation

Wood, Adrian and Ridao-Cano, Cristobal, Skill, Trade and International Inequality (December 1996). IDS Working Paper No. 47, Available at SSRN: https://ssrn.com/abstract=43522

Adrian Wood (Contact Author)

University of Oxford ( email )

Queen Elizabeth House
3 Mansfield Road
Oxford, OX1 3TB
United Kingdom

Cristobal Ridao-Cano

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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