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Workers and trade liberalization: simulating the potential impact of the FTAA on Venezuela's output and wages

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  • Hugo Toledo
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    Abstract

    The Specific Factors model of production and trade with seven skilled labour categories and specific capital in three leading sectors of the Venezuelan economy is used to produce comparative static elasticities of changing prices on factor prices and output as a result of the emerging Free Trade Agreement of the Americas (FTAA). Results show that every labour group except production labour is projected to lose under free trade, while manufacturing capital gains at the expense of capital in agriculture and services due to a projected increase in export demand. Adjustments to free trade are large implying the importance of economic policy in the transition period to free trade.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400103
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    Bibliographic Info

    Article provided by Taylor and Francis Journals in its journal Applied Economics.

    Volume (Year): 38 (2006)
    Issue (Month): 9 ()
    Pages: 1063-1069

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    Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1063-1069

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    1. Thompson, Henry, 1994. "An investigation into the quantitative properties of the specific factors model of international trade," Japan and the World Economy, Elsevier, vol. 6(4), pages 375-388, December.
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