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R. C. Feenstra and G. H. Hanson, “Foreign Investment, Outsourcing and Relative Wages,” The Political Economics of Trade Policy: Papers in Honor of Jagdish Bhagwati, MIT Press, Cambridge, 1996, pp. 89-127.

has been cited by the following article:

• TITLE: A Note on Wage Inequality, Technology, and Trade

  AUTHORS: Chu-Ping Lo

  KEYWORDS: Wage Inequality, International Outsourcing Trade

  JOURNAL NAME: Modern Economy, Vol.2 No.3, July 27, 2011

  ABSTRACT: Zeira (2007) presents a two-country model of endogenous technology and trade, illustrating that trade liberalization reduces wage inequality in developing countries. The result contrasts the current outsourcing trade literature; the conflict is due to the critical assumption made in his model that “the most rewarding technologies are invested first.” If we relax this assumption, or allow the technology frontier to foster labor gains in all existing industries, then Zeira’s model is, in fact, consistent with the current outsourcing trade literature.