Use this URL to cite or link to this record in EThOS: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.571639
Title: Firm behaviour in international markets
Author: Demir, Fitnat Banu
ISNI:       0000 0003 9961 5007
Awarding Body: University of Oxford
Current Institution: University of Oxford
Date of Award: 2012
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Abstract:
This thesis consists of three essays on fi…rm behaviour in international markets. Abstracts can be found at the beginning of their respective chapters. The fi…rst chapter, titled "Trading Tasks and Quality", presents a tractable trade model that combines vertical product differentiation at the firm-level with international fragmentation of production to explain some recently unearthed stylised facts about exporters in developing countries. In line with the recent empirical evidence, it suggests that there is a close link between exports and imports at the …firm-level, and it is quality that establishes the link between the two. The second and third chapters revisit the debate on globalisation and wage inequality. The second chapter, titled "The Trade and Wages Debate Revisited: A new explanation for an old mystery", develops a general equilibrium model where trade liberalisation between two identical countries increases wage inequality in favour of white-collar workers. It shows that country characteristics, such as the relative endowment of white-collar workers and the degree of competition, matter for the equilibrium level of wage inequality after trade liberalisation. The endowment of white-collar labour also affects the level of openness; an increase in the worldwide supply of white-collar labour expands the range of traded goods and increases the volume of trade in already-traded goods. Furthermore, it improves global welfare. The third chapter, titled "Cross-border Mergers and Wage Inequality", focuses on another aspect of globalisation and its effect on wage inequality. It suggests a two-way relationship between cross-border mergers and wage inequality: on the one hand, wage inequality in favour of white-collar workers increases the pro…tability of cross-border mergers; on the other hand, at any level of openness, wage inequality is lower in the presence of cross-border mergers than in their absence. Therefore, participation of a country in global business raises wage inequality, but its level is lower under trade and investment integration compared to trade integration only.
Supervisor: Neary, Peter ; Javorcik, Beata Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.571639  DOI: Not available
Keywords: Economics ; Microeconomics ; globalisation ; international trade and investment
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