ICT, access to services and wage inequality

Arbeitspapier

This paper discusses how information and communication technology (ICT) affects the quality and reach of consumer services. These services need to be provided locally, but consist of several components, some of which can be digitised and transmitted over long distances. A general equilibrium model is developed and numerical simulations in a stylised two-factor, two-region, centre-periphery setting are presented. Trade in intermediate services improves the quality of consumer services enormously in the periphery, but may reduce the quality at the centre. Trade in intermediate services also has a dramatic impact on skilled workers' wages in the periphery, both relative to unskilled workers in their own region and relative to skilled workers at the centre and leads to a more equal distribution of income both between the centre and the periphery and within the periphery.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WTO Staff Working Paper ; No. ERSD-2003-02

Classification and Topics

• Classification: Wirtschaft ; Organizational Behavior; Transaction Costs; Property Rights ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade Policy; International Trade Organizations ; Size and Spatial Distributions of Regional Economic Activity ; General Equilibrium and Welfare Economic Analysis of Regional Economies
• Subject: Trade in services ; transaction costs ; income distribution ; ICT

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nordås, Hildegunn Kyvik
• Event: Veröffentlichung
• (who): World Trade Organization (WTO)
• (where): Geneva
• (when): 2004

Further information

• DOI: doi:10.30875/b9906b4b-en
• Handle: http://hdl.handle.net/10419/90668
• Last update: 10.03.2025, 11:41 AM CET