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The Armington General Equilibrium Model: Properties, Implications and Alternatives

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  • Xiao-Guang Zhang

    (Productivity Commission)

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    Abstract

    The purpose of this paper is to contrast an Armington-based model with the traditional Heckscher-Ohlin framework familiar to textbook trade theory. The models concentrate on different aspects of the gains from trade, and both have deficiencies. The paper argues that by combining both frameworks, the hybrid Arminton-Heckscher-Ohlin model inherits the strengths of both models. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0019/76402/armingtongeneralequilibrium.pdf
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    File URL: http://www.pc.gov.au/research/staffworkingpaper/armingtongeneralequilibriummodel
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    Bibliographic Info

    Paper provided by Productivity Commission, Government of Australia in its series Staff Working Papers with number 0804.

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    Length: 100 pages
    Date of creation: Feb 2008
    Date of revision:
    Publication status: Published by the Productivity Commission, Australia.
    Handle: RePEc:ris:prodsw:0804

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    Related research

    Keywords: trade; tariffs; economic modelling;

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    Cited by:
    1. Peter B. Dixon & Maureen T. Rimmer, 2008. "Welfare effects of unilateral changes in tariffs: the case of Motor vehicles and parts in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-177, Victoria University, Centre of Policy Studies/IMPACT Centre.

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