Search Results - subject:"factor price equalization"

The Stolper-Samuelson Theorem Reconsidered : An Example of Ricardian Dynamic Trade Effects

Baldwin, Richard E. - 2022

Standard trade theory views the capital stock as an endowment. However, trade policy can affect a country's steady-state capital stock. By ignoring the endogeneity of capital, standard analysis is incomplete and can be misleading. For instance, when capital in endogenous, the Stolper-Samuelson...

Persistent link: https://www.econbiz.de/10014146781

Factor Price Equality and the Economies of the United States

Bernard, Andrew B.; Jensen, J. Bradford; Schott, Peter K. - 2021

Do New York and Nashville face the same pressures from increased trade? This paper considers the role of international trade in shaping the product mix and relative wages for regions within the US. Using the predictions from a Heckscher-Ohlin trade model, we ask whether all the regions in the US...

Persistent link: https://www.econbiz.de/10013219174

Was it Stolper-Samuelson, Infant Industry or Something Else? World Trade Tariffs 1789-1938

Williamson, Jeffrey G. - 2021

This paper uses history to explore the empirical content of two determinants of tariff policy that have a long pedigree: the Stolper-Samuelson corollary to the Heckscher-Ohlin theorem, and the infant-industry argument for protection. It reports a set of world tariff facts for the 150 years...

Persistent link: https://www.econbiz.de/10013227023

The Heckscher-Ohlin Model between 1400 and 2000 : When it Explained Factor Price Convergence, When it Did Not, and Why

O'Rourke, Kevin Hjortshøj; Williamson, Jeffrey G. - 2021

There are two contrasting views of pre-19th century trade and globalization. First, there are the world history scholars like Andre Gunder Frank who attach globalization 'big bang' significance to the dates 1492 (Christopher Colombus stumbles on the Americas in search of spices) and 1498 (Vasco...

Persistent link: https://www.econbiz.de/10013235600

Factor Price Equalization in the UK?

Bernard, Andrew B.; Redding, Stephen; Schott, Peter K.; … - 2021

This paper develops a general test of factor price equalization that is robust to unobserved regional productivity … test relative factor price equalization across regions of the UK. Although the UK is small and densely-populated, we find … evidence of statistically significant and economically important departures from relative factor price equalization. Our …

Persistent link: https://www.econbiz.de/10013236796

Have Falling Tariffs and Transportation Costs Raised U.S. Wage Inequality?

Haskel, Jonathan; Slaughter, Matthew J. - 2021

A number of studies have tried to gauge the effect of international trade on the rising U.S. skill premium by examining whether product prices in unskill-intensive sectors have fallen relative to prices in skill-intensive sectors. However, these studies do not estimate what share of domestic...

Persistent link: https://www.econbiz.de/10013248232

The Factor Content of Trade

Davis, Donald R.; Weinstein, David E. - 2021

Study of the factor content of trade has become a laboratory to test our ideas about how the key elements of endowments, production, absorption and trade fit together within a general equilibrium framework. Already a great deal of progress has been made in fitting these pieces together....

Persistent link: https://www.econbiz.de/10013248234

Trade as a Wage Disciplining Device

Persyn, Damiaan - 2021

We estimate how trade openness affects the relationship between wages, labour productivity and foreign wages using sector-level time series for several EU member states. In some countries wages became less responsive to foreign wages as trade costs declined. We show this counter-intuitive result...

Persistent link: https://www.econbiz.de/10013324883

The Rybczynski Theorem, Factor-Price Equalization, and Immigration : Evidence from U.S. States

Hanson, Gordon H.; Slaughter, Matthew J. - 2021

factor-price equalization (FPE) across states, which is a sufficient condition for our output-mix hypothesis to hold. Overall …

Persistent link: https://www.econbiz.de/10013230370

A Note on the Empirical Implementation of the Lens Condition

Bernard, Andrew B.; Robertson, Raymond; Schott, Peter K. - 2021

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...

Persistent link: https://www.econbiz.de/10013233476