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The Dependent Economy Model with Both Traded and Non-Traded Capital Goods

Brock, Philip philiplbrock.com; Turnovsky, Stephen J. - 2021

This paper resolves a long-standing obstacle in the development and use of the dependent economy model with investment …. This obstacle derives from the fact that models of the dependent economy with investment have been criticized for …

Persistent link: https://www.econbiz.de/10013232735

Trade Integration, Global Value Chains, and Capital Accumulation

Sposi, Michael; Yi, Kei-mu; Zhang, Jing - 2022

Motivated by increasing trade and fragmentation of production across countries, accompanied by income convergence by many emerging economies, we build a dynamic two-country model featuring sequential, multi-stage production and capital accumulation. As trade costs decline over time,...

Persistent link: https://www.econbiz.de/10014090771

Tariffs, Capital Accumulation, and the Current Account in a Small Open Economy

Sen, Partha; Turnovsky, Stephen J. - 2021

previous authors. The fail in the long-run capital stock causes an immediate reduction in the rate of investment, which in turn …

Persistent link: https://www.econbiz.de/10013248261

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

-Samuelson-type effects. We also find that other characteristics associated with globalization -- such as foreign investment and export …

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 …

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