On the gains from an expansion in factor mobility in bilateral trade

Paul Comolli

The Journal of International Trade & Economic Development, 1999, vol. 8, issue 4, 343-358

Abstract: A single composite-good two-factor input production model is employed to investigate the gains from an expansion in factor mobility between two countries with different neoclassical technologies. Necessary and sufficient conditions for both countries to gain from an expansion in factor mobility are established. The analysis then develops a criterion based on market information for predicting whether a country would gain from an expansion in factor mobility. Finally, the income distributional effects within and between countries of an expansion in factor mobility are discussed.

Keywords: Factor mobility; gains from trade; pattern of trade; Ramaswami effect (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1080/09638199900000021

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