THE "NEW ECONOMY" AND EFFICIENCY IN FOOD MARKET SYSTEM: A COMPLEMENT OR A BATTLEGROUND BETWEEN ECONOMIC CLASSES?

Abstract

Rapid developments in E-commerce can bring efficiency in the food market system by cutting transaction costs. However, it can also bring a battleground between developed and developing countries and also within developed countries because the New Economy emphasizes knowledge-based labor practices and low-skilled workers of trading nations compete for a shrinking need for their services. An Input-Output model is used to examine the effects on high-skilled and low-skilled worker demand, particularly in food and agriculture. The food and agricultural industries are significant employers of low-skilled labor. Food and agricultural trade has reduced low-skilled labor demand in the United States.Food and Agricultural Trade, Demand for High-skilled and low-skilled Labor, Input-Output Analysis, Marketing,