Trade and tradability: exports, imports, and factor markets in the Salter-Swan model

Sherman Robinson and Karen Thierfelder

No 93, TMD discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: We extend the Salter-Swan model to include both factor markets and semi-traded goods. In our model, changes in relative factor prices depend on changes in world commodity prices, factor endowments, and the trade balance. In contrast, only changes in world commodity prices can affect factor prices in the neoclassical trade model. The inclusion of semi-traded goods weakens the magnification effect of both the Stolper-Samuelson and Rybczynski theorems. When imports and domestic goods are poor substitutes, a characteristic of some commodities in developing countries, the sign of the Stolper-Samuelson effect is reversed. Authors' Abstract.

Keywords: exports; imports; trade; mathematical models (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (2)

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https://hdl.handle.net/10568/156690

Related works:
Journal Article: Trade and Tradability: Exports, Imports, and Factor Markets in the Salter‐Swan Model (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:fpr:tmddps:93

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