This paper analyzes the consequences of international factor movements on the skilled-unskilled wage inequality in a dual-economy set-up that includes unemployment and three intersectorally mobile factors of production-unskilled labor, skilled labor, and capital. Thus far, theoretical literature...

We assume an imperfectly competitive world with <i>n</i> commodities and address the question of whether or not (regional) trade blocs are viable. To answer this fundamental question, we use a notion of stability, offered by <link rid="b5">Greenberg (1990)</link>, and show that regional trade blocs are not viable as they...

We model international trade in renewable resources between a single buyer and competitive sellers as a Stackelberg differential game. The buyer uses unit and <i>ad valorem</i> tariffs to indirectly encourage conservation of the renewable resource under study. First, we show that the efficacy of these...

We offer a new paradigm to understand the effects of trade on factor rewards. It utilizes the classical-Keynesian model, and shows that normally a country's trade deficit hurts labor by lowering the real wage, but benefits the owners of capital. The effects of tariffs on factor rewards and...

The purpose of this paper is to incorporate the currently mushrooming phenomenon of outsourcing into the standard two-sector, two-factor Heckscher-Ohlin model of international trade. We first show how outsourcing modifies a firm's production function, and then demonstrate that outsourcing...