This paper highlights the way in which workers of different age and ability are affected by trade liberalisation. A general-equilibrium model of trade and human-capital is constructed. Individuals differ not only in their endogenous education-level but also in their exogenous age. They can, at...

In this paper we investigate the relative importance of net exchanges of skills embodied in intra-industry and inter-industry trade for the UK's trade with some middle income countries. We also separately measure the net exchanges of skills embodied in vertical and horizontal intra-industry...

This paper studies the interdependence of economic geography and transportation technology. A two-region model is used to obtain the conditions for the modern transportation technology to be adopted in an economy. In particular, the impact of economic geography upon the adoption of the modern...

Samuelson (1947) stated that a regular equilibrium exhibits the transfer paradox if and only if it is unstable. Gale (1974) and many in the early 1980's debunked this equivalence by adding extra countries, reaching an anti consensus.We reinterpret Samuelson's result as identifying the threshold,...

Does offshore sourcing by domestic producers destroy jobs? Does it lower wages? To a growing number of observers the answer to both questions appears to be affirmative. This paper examines the issue in the context of a conventional trade framework that has been amended to allow production to be...

This paper begins with a review of the domestic sources of US trade policy and the external influences on that policy. It then examines changes in the external orientation of US manufacturing, focusing in particular on the rapidly spreading phenomenon of offshore production of parts and and...

Deardorff (Journal of International Economics 36 (1994)167-175) offers an intuitively appealing test for factor price equality (FPE). He demonstrates that FPE is impossible if the set (i.e., lens) of points defined by regional factor abundance vectors does not lie within the set of points...

In Colombia there is no evidence of a direct relationship between economic growth and trade opening; on the contrary, there is evidence that Thirlwall's Law in all its versions better explains the relationship between the external sector and growth, even though the terms of trade are not...

We consider trade liberalization in a multilateral trade model, where countries have identical homothetic tastes but may have different constant returns to scale technologies that produce at least two goods from at least two factors. In this model, we derive the world prices after trade...