Trade and Foreign Capital: Income Redistribution in Simulated Trade Models
AbstractThe present paper compares quantitative impacts of a free trade "program" of 1% price changes across simulations of general equilibrium models of countries and aggregates of skilled labor. These simulations of factor proportions and specific factors models illustrate two quantitative properties of competitive models of production and trade. First, factor intensity has a much stronger influence than factor substitution on the pattern of income redistribution due to price changes and foreign capital. Second, price changes associated with trade have a much stronger impact than foreign capital.
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0208.
Length: 22 pages
Date of creation: 01 May 2002
Date of revision:
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Web page: http://aysps.gsu.edu/isp/index.html
free trade; foreign capital;
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