Ju, Jiandong; Shi, Kang; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2012
factor intensities and allow substitution between intertemporal trade (current account adjustment) and intra-temporal trade … change in the composition of goods trade and a change in the current account. Flexible factor markets reduce the need for the … current account to adjust. On the other hand, the more rigid the factor markets, the larger the size of current account …