Technology, Trade and Factor Mobility
AbstractThe well-known factor price equalization theorem is often invoked to provide trade theorists with justification for the conventional assumption of complete international immobility of factors of production. If conditions of the theorem are satisfied, and free trade does in fact give rise to the equalization of factor returns, then it is inconsequential in which country production takes place. Mundell's original analysis then brings us full circle to the "commodity price equalization theorem". If the conditions of the factor price equalization theorem are met, but a tariff on trade is imposed, then factor mobility can replace trade in establishing productive efficiency. Recent work by Jones and Kemp have analysed further the implications of introducing factor mobility and in particular capital mobility into the analysis of international trade. However, these have concentrated on generating optimum tariff and tax( on capital services) formulae for the individual country trying to maximize its own welfare. The present paper is more in the tradition of the Mundell analysis in that we are more concerned with world efficiency in production--that is, in maximizing potential world welfare.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 82 (1972)
Issue (Month): 327 (September)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Linda S. Goldberg & Michael W. Klein, 1999.
"International Trade and Factor Mobility: An Empirical Investigation,"
NBER Working Papers
7196, National Bureau of Economic Research, Inc.
- Linda S. Goldberg & Michael W. Klein, 1999. "International trade and factor mobility: an empirical investigation," Staff Reports 81, Federal Reserve Bank of New York.
- Unbreen Qayyum & Zafar Mahmood, 2013. "Inter-linkage between Foreign Direct Investment and Foreign Trade in Pakistan: Are they Complements or Substitute?," PIDE-Working Papers 2013:91, Pakistan Institute of Development Economics.
- Jonathan Eaton & Akiko Tamura, 1996.
"Japanese and U.S. Exports and Investment as Conduits of Growth,"
NBER Working Papers
5457, National Bureau of Economic Research, Inc.
- Jonathan Eaton & Akiko Tamura, 1996. "Japanese and U.S. Exports and Investment as Conduits of Growth," NBER Chapters, in: Financial Deregulation and Integration in East Asia, NBER-EASE Volume 5, pages 51-75 National Bureau of Economic Research, Inc.
- Jonathan Eaton & Akiko Tamura, 1995. "Japanese and U.S. Exports and Investment as Conduits of Growth," Boston University - Institute for Economic Development 70, Boston University, Institute for Economic Development.
- Rudy Rahmaddi & Masaru Ichihashi, 2012. "The impact of foreign direct investment on host country exports: Sector based evidence from Indonesian manufacturing," IDEC DP2 Series 2-10, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
- Katrin Springer, 2000. "Do We Have to Consider International Capital Mobility in Trade Models?," Kiel Working Papers 964, Kiel Institute for the World Economy.
- Marzenna Weresa, 2001. "The Impact of Foreign Direct Investment on Poland's Trade with the European Union," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 71-83.
- Oscar Bajo & Maria Montero Mu–oz, 1999.
"Foreign Direct Investment and Trade: A Causality Analysis,"
Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra
9902, Departamento de Economía - Universidad Pública de Navarra.
- Oscar Bajo-Rubio & MarÃa Montero-MuÃ±oz, 2001. "Foreign Direct Investment and Trade: A Causality Analysis," Open Economies Review, Springer, vol. 12(3), pages 305-323, July.
- Oscar Bajo & María Montero, . "Foreign direct investment and trade: A causality analysis," Studies on the Spanish Economy 06, FEDEA.
- Jin Inhwan, 2008. "Is Japanese FDI a Substitute for or a Complement to Trade in Asia?," TERG Discussion Papers 236, Graduate School of Economics and Management, Tohoku University, revised Oct 2008.
- Michael Carlberg, 1984. "International Factor Movements, Allocation and Prices," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 120(I), pages 31-42, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.