trade

First, modifications in trade impacts differentially on regions depending on which industries/sectors are located where. Second, as trade adjustments, this impacts on the agglomeration incentives discussed earlier, and the longer run place of industries/sectors. Each of these aspects contribute to the uneven distribution of economic activity across and within nations and also of relative incomes in unique areas. Differences in between firms rather than inside firms in turn leads to considerable wage inequality inside sectors and within occupations, and is partly driven by exporting firms paying larger wages than non-exporting firms. As a result, even eliminating all governmentally imposed barriers...