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Trade and Capital Flows : A Financial Frictions Perspective

Antràs, Pol; Caballero, Ricardo J. - 2021

The classical Heckscher-Ohlin-Mundell paradigm states that trade and capital mobility are substitutes, in the sense that trade integration reduces the incentives for capital to flow to capital-scarce countries. In this paper we show that in a world with heterogeneous financial development, the...

Persistent link: https://www.econbiz.de/10013213448

The Determinants of Quality Specialization

Dingel, Jonathan I. - 2016

A growing literature suggests that high-income countries export high-quality goods. Two hypotheses may explain such specialization, with different implications for welfare, inequality, and trade policy. Fajgelbaum, Grossman, and Helpman (2011) formalize the Linder hypothesis that home demand...

Persistent link: https://www.econbiz.de/10012980681

Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

O'Rourke, Kevin Hjortshøj - 2021

of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade …, which is what simple Heckscher-Ohlin theory predicts …

Persistent link: https://www.econbiz.de/10013222242

Trade, Technology, and Wage Inequality

Hanson, Gordon H.; Harrison, Ann E. - 2021

In Mexico during the 1980s, the wages of more-educated, more- experienced workers rose relative to those of less-educated, less- experienced workers. We assess the extent to which the increase in the skilled-unskilled wage gap was associated with Mexico's recent trade reform. In particular, we...

Persistent link: https://www.econbiz.de/10013222967

A Multi-Country Approach to Factor-Proportions Trade and Trade Costs

Markusen, James R.; Venables, Anthony - 2021

Classic trade questions are reconsidered by generalizing a factor-proportions model to multiple countries, multi-stage production, and country-specific trade costs. We derive patterns of production specialization and trade for a matrix of countries that differ in relative endowments (columns)...

Persistent link: https://www.econbiz.de/10013240566

A Century of Missing Trade?

Estevadeordal, Antoni; Taylor, Alan M. - 2021

beginning: that is, we ask if the Heckscher-Ohlin theory was so much at odds with reality at its time of conception. We apply … contemporary tests to historical data, focusing on the major trading zone that inspired the factor abundance theory, the Old and … theory, but the results are still very poor …

Persistent link: https://www.econbiz.de/10013243367

International Trade and Factor Mobility : an Empirical Investigation

Goldberg, Linda S.; Klein, Michael W. - 2021

Foreign Direct Investment (FDI) has been growing rapidly, at a pace far exceeding the growth in international trade. Thus, a full understanding of the relationship between trade in goods and FDI is important for obtaining a complete picture of the extent and sources of international linkages. We...

Persistent link: https://www.econbiz.de/10013244735

Trade and Minimum Wages in General Equilibrium : Theory and Evidence

Bai, Xue - 2018

Do minimum wages affect economic outcomes beyond low-skill employment? This paper develops a new model with heterogeneous firms under perfect competition in a Heckscher-Ohlin setting to show that a binding minimum wage raises product prices, encourages substitution away from labor, and creates...

Persistent link: https://www.econbiz.de/10012922983

Technology, Factor Supplies and International Specialization : Estimating the Neoclassical Model

Harrigan, James - 2021

The standard neoclassical model of trade theory predicts that international specialization will be jointly determined … by cross-country differences in relative factor endowments and relative technology levels. This paper uses duality theory …-neutral technology differences are measured using an application of the theory of total factor productivity comparisons, and factor …

Persistent link: https://www.econbiz.de/10013246377

Ginis in General Equilibrium : Trade, Technology and Southern Inequality

Zhu, Susan Chun; Trefler, Daniel - 2021

Within developing and newly industrialized countries, rising wage inequality is both common and highly correlated with export growth. This is incompatible with the Stolper-Samuelson theorem, but suggestive of a role for technological catch-up. We develop this insight using a model that features...

Persistent link: https://www.econbiz.de/10013249349