Trade Liberalization and Technology Choice
AbstractThis paper considers the links between trade liberalization and technology choice in the nonliberalizing country. Trade-liberalization-induced changes in relative product prices have direct effects on equilibrium relative factor returns. The consequent changes in relative input costs may also lead producers to switch to alternative technologies, which will in turn induce a further indirect change in relative factor returns. Will this indirect affect exacerbate or ameliorate the direct effect on relative factor returns? It is found that this depends on the relative cost savings across sectors and factor cost shares. Copyright 2000 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 8 (2000)
Issue (Month): 3 (August)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
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"Relative wages and trade-induced changes in technology,"
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- Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute.
- G. Badri Narayanan, 2006. "Effects of trade liberalization on firm profits and social welfare: the role of technology," Applied Economics Letters, Taylor and Francis Journals, vol. 13(1), pages 63-66.
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