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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...
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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...
Persistent link: https://www.econbiz.de/10005321591
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...
Persistent link: https://www.econbiz.de/10005321721
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...
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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...
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