文档介绍：FIW, a collaboration of WIFO (), wiiw () and WSR () FIW – Working Paper Globalization, EU Enlargement and e Distribution*Fritz Breuss Advanced industrial countries have been exhibiting a steady decline of the labor e shares in the last two decades. We explain this phenomenon by resorting to the old Stolper-Samuelson theorem. The conclusions concerning the impact of free trade on the e distribution are unambiguous in a Heckscher-Ohlin world with two countries, two goods and two factors of production (capital and labor). In contrast, the consequences of FDI from the capital abundant country (EU) to the labor abundant CEEC are ambiguous. Both scenarios are investigatedtheoretically and then simulated with a hypothetical two country CGE model, including the EU and the CEEC. A panel regression for both regions separately, helps to decide empirically which influences on the development of the labor e shares are at work. Globalization, measured by parative advantage (increase in trade) has contributed to a decline in the labor e shares in the EU. Additionally, those countries which are engaged more in trade with the CEEC can expect a sharper decline in the wage share. FDI outflow also exerts a negative influence on the labor e share in the EU. In the CEEC the increase in trade had a positive influence on the labor e share, trade with the EU, however, dampened the labor e share. FDI inflow increased the labor e share in the CEEC. JEL classification:F16, F21, J31; Keywords: globalization, EU enlargement, e distribution; Fritz Breuss is Jean Professor for Economics of European Integration at the Research Institute for European Affairs at the University of Economics and Business Administration, Vienna and researcher at the Austrian Institute of Economic Research (WIFO), Vienna. E-Mail: Fritz.******@wu-*This Paper was previously published as WIFO Working Paper N° 296 in June 2007 Abstract The authorFIW Working Paper N° 8 October20071 Contents 1. Introducti