Property Rights, Mobile Capital, and Comparative Advantage
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Recent papers use sector-specific factor models with mobile labor to show that imperfect property rights can be a source of comparative advantage. In these model, weaker property rights to the specific factor in a sector attract the mobile factor and increase the country's comparative advantage for that sector. If capital in addition to labor is mobile, and if the benefits of capital are non-excludable or if the degree of property rights is endogenous, a deterioration of property rights has ambiguous effects on comparative advantage. The presence of a second mobile factor also makes the relation between the equilibrium wage-rental ratio and the degree of property rights ambiguous.