Goods, Services and Trade
Within the framework of the Heckscher-Ohlin model, this paper addresses some of the positive issues related to trade in durable goods, nondurables, and services. The pattern of trade between countries is analyzed under two of a number of possible regimes governing trade in services. In one case, only durables and nondurables can be traded internationally; in the other, the firms exporting durables also service the units sold abroad. The volume and direction of trade in goods is shown to be determined not only by factor endowments of countries, but also by whether or not services are tradable. Copyright 1989 by The London School of Economics and Political Science.
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Volume (Year): 56 (1989)
Issue (Month): 221 (February)
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