From: IN%"[EMAIL PROTECTED]" "Nathan Newman" 21-JAN-1994 15:58:36.64
To: IN%"[EMAIL PROTECTED]"
Subj: RE: Does International Trade Lower Wages in the 1st World?
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Date: Thu, 20 Jan 1994 20:56:39 -0800 (PST)
From: Nathan Newman <[EMAIL PROTECTED]>
Subject: RE: Does International Trade Lower Wages in the 1st World?
In-reply-to: <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
Did you mean to send this to the whole list? I didn't see a PEN-L
address. You might want to repost.
Interesting though.
**************************************************
* Nathan Newman: [EMAIL PROTECTED] *
* UC-Berkeley *
On Fri, 21 Jan 1994 [EMAIL PROTECTED] wrote:
> Re request for any research on the impact of the relacation of
> production. A LONG time ago I did a paper applying Robinson's "golden
> age" analysis to the question of the relocation of production. It's
> not empirical, and far from conclusive, but the results implied that
> multinationals re are likely to rey try to pocket the difference
> (as Nathan suggests) and also that there are likely to be depressing
> macro effects that somewhat counter the micro effects (lower costs)
> that motivated the firms in the first instance.
> The rationale for the latter is fairly obvious: workers' wages in the
> First World are part of effective demand; if reolcation actually
> erduces the wage bill (and redistributes part of the fall to higher
> profits) there will be a fall in effective demand (since the rich
> consume proportionately less than the pooor). There will thus be a
> "classic" Keynesian demand fall going along with the price fall,
> which while it might not completely obscure the latter, could go
> a long way towards making it less significant.
> Cheers,
> Steve Keen
>
