Increasing returns, trade and the regional structure of wages

Article Abstract:

Two regional economy predictions are tested using Mexico's regional wage structure data before and after trade liberalization. The predictions, based on trade theories from increasing returns, state that industrial concentration is geographic and that relative salaries reduce with transport costs from industrial centers. Empirical findings support the predictions and reveal that distance from industrial centers is a factor in regional wage structure. The findings emphasize the importance of trade policy in the development of regional economies.

Wage Administration, Compensation management, Mexico, Wages, Wages and salaries, Industrial development, Industrialization, Industrial concentration, Regional disparities (Economics)

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Limits to the potential gains from economic integration and other supply side policies

Article Abstract:

The adoption of supply side economic policies does not ensure more efficient resource allocation and aggregate production, as contended by classical welfare economics. Although certain gains can be derived from such policies, these benefits are not as universal as claimed by some studies. Nevertheless, supply side policies can still be used to improve production efficiency, provided they are accompanied by a freeze on prices, wages and after-tax dividend payments.

Evaluation, Economic policy, Supply-side economics

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Regional integration in Europe

Article Abstract:

The emergence of the EC as a major trading bloc greatly benefits its members and its trading partners. This regional economic integration is credited for creating a substantial multilateral trade liberization that also led to the stability of peace in Europe. However, some critics express their concerns regarding the ability of the EC to maintain its support of the multilateral trade system and a possible rise of 'eurocentrism'.

Analysis, Economic aspects, European Union, European Community

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