Paul Samuelson's famous 1948 "factor price equalization theorem" was his main contribution to international trade theory. He demonstrated conditions under which trade in goods only would lead to full equalization of the remuneration of productive factors across countries. In practice, general...

In this paper we derive a new model on exchange rate response to a lasting higher interest rate level. Contemporary models do not provide a convincing explanation for this relationship, but recent research suggests that models based on demand-pull effects to be somewhat confined to small funding...

This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to Bangladesh, we instrument export demand with...

This paper develops and implements a novel test of the Stolper-Samuelson theorem. We use nationally-representative matched employer-employee panel data from 1997 through 2015 to study the effect of the rise in China's exports on French worker earnings. Our version of the Stolper-Samuelson...

Paul Samuelson's famous 1948 "factor price equalization theorem" was his main contribution to international trade theory. He demonstrated conditions under which trade in goods only would lead to full equalization of the remuneration of productive factors across countries. In practice, general...

Neoclassical trade theory is largely based on the Heckscher-Ohlin (H-O) theorem. This proposition has survived all criticisms for many decades and it is still the basis for orthodox free-market trade policies. The theorem has been tested by various methodologies under different scenarios. Still,...

Large wage differences between countries ("place premiums") are well documented. Theory suggests that factor price convergence should follow increased migration, capital flows, and commercial integration. All three have increased between the United States and Mexico over the last 25 years. This...

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration and foreign direct investment followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree...

This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to Bangladesh, the authors instrument export...

We demonstrate that agent-based simulations can exhibit results in line with classic macroeconomic theory. In particular, we present an agent-based simulation of an Arrow-Debreu economy that accurately exhibits the Stolper-Samuelson effect as an emergent property. Absent of a Walrasian...

Large wage differences between countries ("place premiums") are well documented. Theory suggests that factor price convergence should follow increased migration, capital flows, and commercial integration. All three have increased between the United States and Mexico over the last 25 years. This...

This paper develops a multi-sector full-employment general equilibrium model for a typical developing country (DC hereafter) like India with internationally non-traded goods and international fragmentation in skill-intensive production, to explore the general equilibrium impact of such...

Both the Heckscher-Ohlin theorem and the factor price equalization theorem depend on or related to trade equilibriums. The trade equilibrium is the price equilibrium of production, consumption and trade. This study provides a price solution for the Heckscher-Ohlin model by using HOV assumption...

This paper conducts revealed preference tests of the Stolper-Samuelson theorem. If the Stolper-Samuelson theorem holds, one would expect to find a country's relatively scarce factor of production (in this case labor) harmed from trade liberalization and thus opposing trade liberalization. The...

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration and foreign direct investment followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree...

We build a theoretical model that incorporates unionization in the labor market into a Heckscher-Ohlin-Samuelson (HOS) framework to investigate the impact of unionization on the Stolper-Samuelson Theorem. To capture the American economy case, we assume that unskilled labor in the manufactured...

Exploiting the information contained in an economy's input-output matrix and using the novel approach developed by Fisher and Marshall (2011), we calculate Rybczynski effects and Stolper-Samuelson effects for Germany in 2007. We show how sectoral output and factor remuneration react to exogenous...

We build a theoretical model that incorporates unionization in the labor market into a Heckscher-Ohlin-Samuelson (HOS) framework to investigate the impact of unionization on the Stolper-Samuelson Theorem. To capture the American economy case, we assume that unskilled labor in the manufactured...

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration and foreign direct investment followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree...

Large wage differences between countries ("place premiums") are well documented. Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration, foreign direct investment, and migration followed the 1994 North...

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration and foreign direct investment followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree...

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising commercial integration and foreign direct investment followed the 1994 North American Free Trade Agreement between the United States and Mexico. This paper evaluates the degree...

The Heckscher-Ohlin model with arbitrary number of goods, factors and countries (consumers) and no restrictions on factor trading is shown to be equivalent to an exchange model whose goods are the productive factors while consumer's indirect demands for factors are derived from their actual...

This article contains an examination of whether free trade coupled with the neoliberal principles of the Washington Consensus has been turned into a defensive strategy used by developed countries in order to maintain and perpetuate the division of labour in the global market between developed...

Consider an economy in which various types of labor are used to produce consumption, but not all types of labor are useful for upgrading the stock of organization capital — that is, for replacing old projects with more productive new projects. When news induces consumers to want to save more,...