Summary This paper expands the empirical analysis of hysteresis in trade in two directions. First, it uses disaggregate data for exports from Germany to the U.S. to minimise aggregation problems. Second, it introduces a new non-linear model to test for the non-linear parameter. The model is...

Summary Building on a Heckscher-Ohlin-Samuelson framework with factor price rigidities, this paper provides an empirical analysis of the relationship between trade, technical progress, and the labor market in West Germany for the period from 1970 until 1990. The analysis builds on relative...