A Modification of Ronald Joness Specific Factors Model; with Historical and other Applications

Jones (1971) examines a three-factor two-good model under the assumption that two of the factors are specific to one sector (a different sector for each such factor). In this paper that specification is weakened, so that only one sector (agriculture) has a specific factor (land). When land is a separable input into food production, factor price-equilization can no longer be shown, but Stolper-Samuelson magnification is still observed, although it is weakened. Applications to the abolition of the Corn-Laws and to North-South trade are discussed.