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On Types of Trade,Adjustment of Labor and Welfare Gains During Asymmetric Liberalizations

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Author Info
Yener Kandogan ()
Abstract

This paper modifies the two-industry, two-country Heckscher-Ohlin model with intermediate goods to decompose trade into its horizontal and vertical intra-industry, as well as inter-industry parts. Acknowledging that liberalization affects each type of trade differently, and that changes in each imply labor adjustment of different magnitudes, the paper analyzes the effects of widely observed asymmetries in liberalization policies. The paper concludes with the implications of the model for the liberalization between the East and the West through the Europe Agreements.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp568.pdf
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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2003-568.

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Length: 26 pages
Date of creation: 26 Jun 2003
Date of revision:
Handle: RePEc:wdi:papers:2003-568

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Related research
Keywords: Trade types; Adjustment; Asymmetric Liberalization; Europe Agreements;

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F15 - International Economics - - Trade - - - Economic Integration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Feenstra, R.C. & Hanson, G.H., 1995. "Foreign Investment, Outsourcing and Relative Wages," Department of Economics 95-14, California Davis - Department of Economics.
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  2. Baldwin, Robert E. & Mutti, John H. & Richardson, J. David, 1980. "Welfare effects on the United States of a significant multilateral tariff reduction," Journal of International Economics, Elsevier, vol. 10(3), pages 405-423, August. [Downloadable!] (restricted)
  3. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March. [Downloadable!] (restricted)
  4. Bureau, Jean-Christophe & Marette, Stephan & Schiavina, Alessandra, 1998. "Non-tariff Trade Barriers and Consumers' Information: The Case of the EU-US Trade Dispute over Beef," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 25(4), pages 437-62.
  5. Cadot, Olivier & de Melo, Jaime, 1994. "France and the CEECs: Adjusting to Another Enlargement," CEPR Discussion Papers 1049, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Werner Antweiler & Daniel Trefler, 2000. "Increasing Returns and All That: A View From Trade," NBER Working Papers 7941, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Natalia T. Tamirisa, 1998. "Exchange and Capital Controls as Barriers to Trade," IMF Working Papers 98/81, International Monetary Fund.
  8. Jolanta Dziembowska-Kowalska & Rolf H. Funck, 2000. "Cultural activities as a location factor in European competition between regions: Concepts and some evidence," The Annals of Regional Science, Springer, vol. 34(1), pages 1-12. [Downloadable!] (restricted)
  9. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September. [Downloadable!] (restricted)
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