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Trade Liberalisation and the Distribution of Welfare Gains under Imperfect Competition

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  • Michael Gasiorek

Abstract

This paper examines the effects on factor prices and welfare of partial trade liberalisation. The model is general equilibrium with two countries, two factors, and three sectors -- perfectly competitive, imperfectly competitive and trading resources. As trade is liberalised changes in factor prices and thus welfare may be non-monotonic even if the countries are identical. Differences across countries introduce Stolper-Samuelson considerations and affect the relative incentives for trade liberalisation across countries and factors.

Suggested Citation

  • Michael Gasiorek, 1997. "Trade Liberalisation and the Distribution of Welfare Gains under Imperfect Competition," Annals of Economics and Statistics, GENES, issue 47, pages 227-244.
    • Handle: RePEc:adr:anecst:y:1997:i:47:p:227-244
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    File URL: http://www.jstor.org/stable/20076089
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    Cited by:

    1. Behrens, Kristian & Picard, Pierre M., 2011. "Transportation, freight rates, and economic geography," Journal of International Economics, Elsevier, vol. 85(2), pages 280-291.

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