Neary, J. PeterJ. PeterNeary2009-07-222009-07-222001-11-29200102http://hdl.handle.net/10197/1270I argue that increased foreign competition can affect technical choice and skill differentials even when actual imports do not rise significantly. I present a model of General Oligopolistic Equilibrium ("GOLE") in which a reduction in import barriers (whethe technological or policy-imposed) encourages more strategic investment by incumbent firms. The predictions accord with many of the stylised facts: higher skill premia; higher ratios of skilled to unskilled workers employed in all sectors and throughout the economy; little change in import volumes or prices; and rapid technological progress with rather little change in total factor productivity. (Presidential address to the International Economics and Finance Society, presented at the AEA/ASSA meetings, New Orleans, January 2001.)249116 bytesapplication/pdfenGeneral Oligopolistic Equilibrium ("GOLE")Skill premiaSkill-biased technical progressStrategic investmentTrade and wagesF16J31F12Competition, InternationalWage differentialsCompetition, ImperfectLaborWorking Paperhttps://creativecommons.org/licenses/by-nc-sa/1.0/