International Trade, Factor Mobility and Trade Costs

Victor D Norman and Anthony Venables

Economic Journal, 1995, vol. 105, issue 433, 1488-1504

Abstract: The authors consider a Heckscher-Ohlin model in which goods and factors of production can be traded but trade involves transactions costs. Goods trade alone will not equalize factor prices, so there is an incentive for factors to move internationally. The authors characterize equilibria in which there is no trade, goods trade only, factor movement only, and both trade in goods and factor movement. This generalizes the Heckscher-Ohlin model to explain not only the direction of trade but also the prior question of what gets traded, i.e., how goods and factors are partitioned into tradeables and nontradeables. Copyright 1995 by Royal Economic Society.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819951 ... 0.CO%3B2-Q&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: International Trade, Factor Mobility and Trade Costs (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:105:y:1995:i:433:p:1488-1504

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().