The Ramaswami Function and International Factor Mobility

Ronald Jones

Indian Economic Review, 1990, vol. 25, issue 2, 143-164

Abstract: This paper attempts to reexamine the theory underlying gains from international factor mobility. It focuses on a brief but significant contribution by V. K. Ramaswami, who considered a two country, one product, identical technology and two factors of production set up. The issue has received considerable attention in recent literature characterised by complex models and less restrictive assumptions. Providing a synthesis of this literature and its relation to the concept proposed by Ramaswami, the paper highlights that the essence of Ramaswami's argument involves a simultaneous reallocation of both labour and capital across countries. It is also shown that Ramaswami's basic argument survives even when we consider the more complex realities of the world trade.

Date: 1990
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