We develop a pair of industry-specific partial equilibrium models of trade policy thatestimate how changes in tariff rates affect FDI. The models focus on two differenttypes of FDI. Tariff-jumping FDI is likely to expand with a large increase in the tariff ratein export markets, while export...

International differences in educational attainment rates affect the volume of trade through several channels. According to the factor proportions model of trade, the ratio of highly educated workers to less educated workers in each country determines the national product mix. In this model, the...