Factor mobility and international trade

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Title: Factor mobility and international trade
Authors: Neary, J. Peter
Permanent link: http://hdl.handle.net/10197/1754
Date: 16-Jun-1994
Online since: 2010-01-13T14:33:44Z
Abstract: This paper develops a two-country model of trade and factor mobility in which capital is sector-specific but internationally mobile. The model avoids the implausible predictions of specialisation in Heckscher-Ohlin models and exhibits a rich variety of responses to exogenous shocks, including transfers, capital taxes, and tariffs. The results throw light on the relationship between goods and factor trade, reconciling the conflicting views of previous writers. It is argued that the model holds out the possibility of a new paradigm in international trade theory in which international factor movements play a central rather than a peripheral role.
Item notes: A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP94/9
Keywords: International capital mobilityInternational tradeTariffs and capital taxesSector-specific capital
metadata.dc.subject.classification: F13; F10
Subject LCSH: International trade--Mathematical models
Capital movements
Commercial policy
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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