How does international trade affect household welfare?

Artikel

Imported products tend to have lower prices than locally produced ones for a variety of reasons, including lower labor costs and better technology in the exporting country. The reduced prices may lead to wage losses for individuals who work in the production of a local version of the imported item. On the other hand, lower prices may be beneficial to households if the cheaper product is in their consumption basket. These welfare gains through consumption, on average, are found to be larger in magnitude than the wage effect for some developing countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2017 ; Bonn: Institute for the Study of Labor (IZA)

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Empirical Studies of Trade ; Microeconomic Analyses of Economic Development ; Economic Development: Human Resources; Human Development; Income Distribution; Migration
• Subject: international trade ; household welfare ; consumption ; wages

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Marchand, Beyza Ural
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2017

Further information

• DOI: doi:10.15185/izawol.378
• Handle: http://hdl.handle.net/10419/171186
• Last update: 10.03.2025, 11:45 AM CET