Krishna, Kala; Mukhopadhyay, Abhiroop; Sahin, Cemile - 2021
This paper explains the differential impacts of trade on countries in terms of institutional differences which result … in factor market distortions. We modify the Ricardian, Specific Factor and Hecksher Ohlin models of trade to capture … these. Trade has both terms of trade effects and output effects. Both work to raise welfare in an undistorted economy. In a …