Showing 1 - 10 of 473
The two models of international trade with developed factor markets -- Heckscher-Ohlin and Specific Factors -- both suffer significant defects. For example, their predictions about the patterns of domestic production and international trade are for the most part either indeterminate or uselessly...
Persistent link: https://www.econbiz.de/10005037681
With the signing of the North American Free Trade Agreement (NAFTA) in 1994, Mexico entered a bilateral free trade agreement which not only lowered its own tariffs on imports but also lowered tariffs on its exports to the U.S. We find that women's relative wage increased, particularly during the...
Persistent link: https://www.econbiz.de/10008628327
Contract enforcement is probabilistic, but the probability depends on rules and processes. A stimulus to trade may induce traders to alter rules or processes to improve enforcement. In the model of this paper, such a positive knock-on effect occurs when the elasticity of supply of traders is...
Persistent link: https://www.econbiz.de/10005723176
countries which are labor abundant in a global sense may see wages decline with liberalization if they are capital abundant in a …
Persistent link: https://www.econbiz.de/10005828880
We find that over the period 1950-1990, US states absorbed increases in the supply of schooling due to tighter compulsory schooling and child labor laws mostly through within-industry increases in the schooling intensity of production. Shifts in the industry composition towards more...
Persistent link: https://www.econbiz.de/10009395467
We develop a quantitative spatial model that incorporates a rich geography of trade and imperfect labor mobility between locations. We provide general results for the existence, uniqueness and comparative statics of the equilibrium. We show how the model can be used to undertake counterfactuals...
Persistent link: https://www.econbiz.de/10011227924
Our paper integrates results from trade-in-task theory into mainstream trade theory by developing trade … wages and production. Extensions of the integrating framework easily accommodate monopolistic competition and two …-way offshoring/trade-in-tasks. …
Persistent link: https://www.econbiz.de/10008628412
necessary and sufficient conditions for the effects on wages, prices, production and trade. We show that offshoring requires …A simple model of offshoring, which depicts offshoring as 'shadow migration,' permits straightforward derivation of … modification of the four classic international trade theorems, so econometricians who ignore offshoring might reject the Heckscher …
Persistent link: https://www.econbiz.de/10005710098
Deardorff [Journal of International Economics 36 (1994) 167-175] offers an intuitively appealing test for factor price equality (FPE). He demonstrates that FPE is impossible if the set (i.e., lens) of points defined by regional factor abundance vectors does not lie within the set of points...
Persistent link: https://www.econbiz.de/10005830512
tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country. We identify a …
Persistent link: https://www.econbiz.de/10005089209