Existence of Stolper-Samuelson Effects: A Case Study on Australian Manufacturing
Over the last two decades, Australian economy has been integrated with the rest of the world through reduced protection accorded to domestic producers and consequent rise in manufacturing imports from both the developed and developing countries. This paper examines the effect of international trade on wage inequalities among skilled and unskilled labour force in Australian manufacturing industries. The paper measures Stolper-Samuelson (S-S) effects, over a period from 1982-83 to 1998-99. The findings of this study show mixed evidence on the presence of S-S effects, with strong effects for some unskilled intensive industries such as textiles & clothing in the post liberalization period with little or no effect for the others.
Keywords: International Trade, Skilled-Unskilled Wage Inequality, Stolper-Samuelson Effects of Trade
Dr. Wahida Yasmeen
Assistant Professor, Department of Economics, St. Thomas University