Olarreaga, Marcelo - In: Canadian Journal of Economics 31 (1998) 4, pp. 830-836
change in the direction of the trade pattern, immiserizing tariff reductions may occur. Here it is shown that, in the mirror … case when foreign-owned factors tend to promote the existing trade pattern (i.e., trade-promoting), similar results can be … obtained. On the other hand, when foreign factors are trade substituting, tariff reductions cannot be immiserizing. …