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The IMF study finds that trade alone brings up the bottom and tends to reduce inequality. However, technology transfer and foreign investment, which tends to be tech-related, has bid up the price for certain kinds of highly skilled labour faster than it has for lower skilled labour, more than offsetting the equalising tendency of trade alone.
As he so often does, University of Chicago Nobelist Gary Becker has the right way of thinking about this:
Few critics of globalisation would claim that its effects were bad if globalisation significantly raised the returns to financial or physical capital owned by local investors in developing countries...
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