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Intermediate goods trade and international wage convergence in Central Europe
Authors:Peter Egger
Institution:(1) Ifo Institute for Economic Research and Ludwig Maximilians University of Munich, Poschingerstrasse 5, D-81679 Munich, Germany
Abstract:The recent literature on international outsourcing points out that cross-border fragmentation of production processes may foster the convergence of international factor prices. This paper makes a first attempt to analyze this hypothesis empirically using a small panel of NACE 2-digit wage data of three Central and Eastern European economies.
Keywords:Intermediate goods trade  Sigma convergence
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