TY  - JOUR
AU  - Krugman,Paul
TI  - Technology, Trade, and Factor Prices
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5355
PY  - 1995
Y2  - November 1995
UR  - http://www.nber.org/papers/w5355
L1  - http://www.nber.org/papers/w5355.pdf
N1  - Author contact info:
Paul R. Krugman
Department of Economics
Princeton University
Woodrow Wilson School
Princeton, NJ  08544
Tel: 609/258-4570
Fax: 609/258-2809
E-Mail: pkrugman@princeton.edu
AB  - A number of recent studies appear to show that international trade is a secondary factor in the growing inequality of wages, with technology probably the main culprit.  These studies have, however, been subjected to severe and in some cases harshly worded criticism by trade theorists, who argue that the authors of these studies have misspecified the impacts of both technology and trade on factor prices.  This paper shows that it is the critics who are confused.  In particular, much recent discussion about technology, trade, and wages is marked by a failure to distinguish between the models we all use and the particular thought experiments we typically use to teach these models -- which happen not to be the appropriate thought experiments we need to analyze the real-world issues.
ER  -