Preferential Trade Arrangements, Induced Investment, and National Income in a Heckscher-Ohlin-Ramsey Model
AbstractWe develop a Heckscher-Ohlin-Ramsey model, combining dual techniques with classic geometric techniques from trade theory. This framework is used to explore the long-run general equilibrium effects of regional integration (preferential trade agreements). Emphasis is placed on positive mechanics related to adjustment in the capital stock, long-run changes in the pattern in trade, and the implications for changes in long-run (steady-state) national income. The importance of relative country size and the dynamic implications for third countries are also addressed.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-061/2.
Date of creation: 31 Jul 2000
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regionalism; trade and investment; preferential trade arrangements; Heckscher Ohlin Ramsey model; trade and growth;
Other versions of this item:
- Francois, Joseph, 2000. "Preferential Trade Arrangements, Induced Investment, and National Income in a Heckscher-Ohlin-Ramsey Model," CEPR Discussion Papers 2535, C.E.P.R. Discussion Papers.
- F15 - International Economics - - Trade - - - Economic Integration
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F1 - International Economics - - Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-09-18 (All new papers)
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