Showing 1 - 7 of 7
Empirical studies of factor proportion theory face the challenge of measuring factor abundance in a world with many factors of production and countries. This paper introduces a mean weighted measure of factor abundance, and using data for nine factors and 33 countries, presents the resulting...
Persistent link: https://www.econbiz.de/10005714960
The hypothesis that per capita output converges across economies over time represents one of the oldest controversies in economics. This essay surveys the history and development of the hypothesis, focusing particularly on its vast literature since the mid-1980s. A summary of empirical analyses,...
Persistent link: https://www.econbiz.de/10005715090
The Factor Price Equalization theorem implies that freer trade would narrow the gap in returns to similar productive factors across countries over time. To determine the empirical relevance of this implication, data for 11 industries in 14 countries over the period 1970–1985 are...
Persistent link: https://www.econbiz.de/10005715163
This paper points out that the different definitions of factor abundance in the empirical trade literature are weaker than in the Heckscher-Ohlin model, which compares endowments of two factors across two countries. These different definitions in practice lead to different factor abundance...
Persistent link: https://www.econbiz.de/10005547029
A competitive general equilibrium model of production is specified and the long-run comparative static elasticities of changing prices on factor prices are examined in eight developing and newly industrialized countries. Unskilled labor in these developing countries stands to gain from a program...
Persistent link: https://www.econbiz.de/10005715002
The export sector of a small open economy is assumed to be a price-taking monopoly with increasing long-run average cost and positive profit. Under such conditions, demands for productive factors are shown to slope downward in the general equilibrium of an otherwise competitive economy....
Persistent link: https://www.econbiz.de/10005715021
An oil tariff has potential to alter the pattern of production and income distribution across productive factors. This paper use a general equilibrium model of production and trade with inputs of capital, labor, and international energy to examine the effects of an oil tariff. Under a range of...
Persistent link: https://www.econbiz.de/10005543028