IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1805.06129.html
   My bibliography  Save this paper

Factor endowment--commodity output relationships in a three-factor two-good general equilibrium trade model: Further analysis

Author

Listed:
  • Yoshiaki Nakada

Abstract

The position of the EWS (economy-wide substitution)-ratio vector determines the Rybczynski sign pattern, which expresses the factor endowment--commodity output relationships, and the Stolper-Samuelson sign pattern, which expresses the commodity price--factor price relationships in a three-factor two-good general equilibrium trade model (see Nakada (2016a)). In this article, we show that the EWS-ratio vector exists on the line segment. Using this relationship, we develop a method to estimate the position of the EWS-ratio vector. We derive a sufficient condition for extreme factors to be economy-wide complements, which implies "a strong Rybczynski result." Additionally, we derive a sufficient condition for a specific Stolper-Samuelson sign pattern to hold. We assume factor-intensity ranking is constant. This article provides a basis for further applications.

Suggested Citation

  • Yoshiaki Nakada, 2018. "Factor endowment--commodity output relationships in a three-factor two-good general equilibrium trade model: Further analysis," Papers 1805.06129, arXiv.org, revised Oct 2018.
    • Handle: RePEc:arx:papers:1805.06129
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1805.06129
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher Bliss, 2003. "A Specific‐Factors Model with Historical Application," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 268-278, May.
    2. Ruffin, Roy J., 1981. "Trade and factor movements with three factors and two goods," Economics Letters, Elsevier, vol. 7(2), pages 177-182.
    3. Jones, Ronald W. & Easton, Stephen T., 1983. "Factor intensities and factor substitution in general equilibrium," Journal of International Economics, Elsevier, vol. 15(1-2), pages 65-99, August.
    4. Nakada, Yoshiaki, 2015. "Comment on Suzuki’s rebuttal of Batra and Casas," MPRA Paper 66909, University Library of Munich, Germany.
    5. Nakada, Yoshiaki, 2015. "Deriving the factor endowment-commodity output relationship for Thailand (1920-1929) using a three-factor two-good model," MPRA Paper 69654, University Library of Munich, Germany.
    6. Suzuki, Katsuhiko, 1983. "A synthesis of the heckscher-ohlin and the neoclassical models of international trade : A Comment," Journal of International Economics, Elsevier, vol. 14(1-2), pages 141-144, February.
    7. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-621, August.
    8. Batra, Raveendra N. & Casas, Francisco R., 1976. "A synthesis of the Heckscher-Ohlin and the neoclassical models of international trade," Journal of International Economics, Elsevier, vol. 6(1), pages 21-38, February.
    9. Henry Thompson, 2000. "Economic Integration," World Scientific Book Chapters, in: International Economics Global Markets and International Competition, chapter 9, pages 298-334, World Scientific Publishing Co. Pte. Ltd..
    10. Bergman, Lars, 2005. "CGE Modeling of Environmental Policy and Resource Management," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 24, pages 1273-1306, Elsevier.
    11. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yoshiaki Nakada, 2018. "Deriving the factor endowment--commodity output relationship for Thailand (1920-1927) using a three-factor two-good general equilibrium trade model," Papers 1810.04819, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nakada, Yoshiaki, 2015. "Economy-wide substitution and Rybczynski sign pattern in a three-factor two-good model," MPRA Paper 67863, University Library of Munich, Germany.
    2. Yoshiaki Nakada, 2018. "Deriving the factor endowment--commodity output relationship for Thailand (1920-1927) using a three-factor two-good general equilibrium trade model," Papers 1810.04819, arXiv.org.
    3. Yoshiaki Nakada, 2017. "Factor endowment -- commodity output relationships in a three-factor, two-good general equilibrium trade model," Papers 1711.11429, arXiv.org.
    4. Nakada, Yoshiaki, 2015. "Deriving the factor endowment-commodity output relationship for Thailand (1920-1929) using a three-factor two-good model," MPRA Paper 69654, University Library of Munich, Germany.
    5. Nakada, Yoshiaki, 2015. "Economy-wide substitution and Rybczynski sign pattern in a three-factor two-good model: Further analysis," MPRA Paper 67864, University Library of Munich, Germany.
    6. Hikari Ban, 2010. "Factor Substitution and Relative Factor Prices," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 562-573, August.
    7. Nakada, Yoshiaki, 2015. "Comment on Suzuki’s rebuttal of Batra and Casas," MPRA Paper 66909, University Library of Munich, Germany.
    8. Yoshiaki Nakada, 2017. "The effects of energy and commodity prices on commodity output in a three-factor, two-good general equilibrium trade model," Papers 1711.10096, arXiv.org, revised Nov 2018.
    9. Nakada, Yoshiaki, 2015. "Factor intensities and factor substitution in general equilibrium: A Comment," MPRA Paper 66758, University Library of Munich, Germany.
    10. Henry Thompson, 2016. "Tariffs and Wages in Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 399-405, May.
    11. Henry Thompson, 1995. "Free trade and income redistribution in some developing and newly industrialized countries," Open Economies Review, Springer, vol. 6(3), pages 265-280, July.
    12. Kim, Hyeongwoo & Thompson, Henry, 2014. "Wages in a factor proportions model with energy input," Economic Modelling, Elsevier, vol. 36(C), pages 495-501.
    13. Sanoussi Bilal & Jean-Marie Grether & Jaime de Melo, 2015. "Attitudes Towards Immigration: A Trade Theoretic Approach," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 18, pages 439-453, World Scientific Publishing Co. Pte. Ltd..
    14. Henry Thompson, 1994. "Do oil tariffs lower wages?," Open Economies Review, Springer, vol. 5(2), pages 191-202, March.
    15. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    16. Kim, Hyeongwoo & Thompson, Henry, 2009. "Factor Proportions Wages in a Structural Vector Autoregression," MPRA Paper 17798, University Library of Munich, Germany.
    17. Henry Thompson, 2013. "Resource Rights and Markets in a General Equilibrium Model of Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 131-139, September.
    18. Bliss, Christopher, 2007. "Trade, Growth, and Inequality," OUP Catalogue, Oxford University Press, number 9780199204649.
    19. O'Rourke, Kevin H. & Sinnott, Richard, 2006. "The determinants of individual attitudes towards immigration," European Journal of Political Economy, Elsevier, vol. 22(4), pages 838-861, December.
    20. Henry Thompson, 2010. "Energy Substitution, Production, and Trade in the US," Auburn Economics Working Paper Series auwp2010-06, Department of Economics, Auburn University.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1805.06129. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.