Were Trade and Factor Mobility Substitutes in History?
William Collins,
Kevin O'Rourke and
Jeffrey Williamson ()
No 1661, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
Trade theorists have come to understand that their theory is ambiguous on the question: are trade and factor flows substitutes? While this sounds like an open invitation for empirical research, hardly any serious econometric work has appeared in the literature. This paper uses history to fill the gap. It treats the experience of the Atlantic economy between 1870 and 1940 as panel data with almost 700 observations. When shorter run business cycles and ‘long swings’ are extracted from the panel data, substitutability is soundly rejected. When secular relationships are extracted over longer time periods and across trading partners, once again substitutability is soundly rejected. Finally, the paper explores immigration policy and finds that policy-makers never behaved as if they viewed trade and immigration as substitutes.
Keywords: Factor Mobility; Trade (search for similar items in EconPapers)
JEL-codes: F1 F2 N7 (search for similar items in EconPapers)
Date: 1997-06
References: Add references at CitEc
Citations: View citations in EconPapers (33)
Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1661 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Working Paper: Were Trade and Factor Mobility Substitutes in History? (1997)
Working Paper: Were Trade and Factor Mobility Substitutes in History? (1997) 
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:cpr:ceprdp:1661
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1661
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().