TRADE AND TRADABILITY: EXPORTS, IMPORTS, AND FACTOR MARKETS IN THE SALTER-SWAN MODEL
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
We extend the Salter-Swan model to include both factor markets and semi-traded
goods. In our model, changes in relative factor prices depend on changes in world
commodity prices, factor endowments, and the trade balance. In contrast, only changes in
world commodity prices can affect factor prices in the neoclassical trade model. The
inclusion of semi-traded goods weakens the magnification effect of both the Stolper-Samuelson and Rybczynski theorems. When imports and domestic goods are poor
substitutes, a characteristic of some commodities in developing countries, the sign of the
Stolper-Samuelson effect is reversed.