IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Goods versus Factors: When Borders Open, Who Moves?

  • Michael Michaely

    (Hebrew University of Jerusalem)

Registered author(s):

    This paper raises the question when both goods and factors can move in an opening of two countries' borders whether it is possible to say a priori which of the two would move and which moves faster as both move. The paper notes that this question should be answered in terms of the extent of the existing barriers whether natural or policy based and the ability to shift production activities in the two countries or regions. The issue is analysed taking into account the movement of goods and factors between the centres of activity in Israel and the West Bank and Gaza. The main finding of the analysis in this case is that following the opening of the borders, adjustment took place predominantly through the movement of factors, almost exclusively labour: and only to a very limited extent through the exchange of goods. This may be due to the short distances and prohibition of shifting residences. In steady state this is expected to be large and sustained compared to an increase and a decline of labour movement in steady state if residency were available.. Copyright � Blackwell Publishing Ltd 2003.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Wiley Blackwell in its journal The World Economy.

    Volume (Year): 26 (2003)
    Issue (Month): 4 (04)
    Pages: 533-553

    in new window

    Handle: RePEc:bla:worlde:v:26:y:2003:i:4:p:533-553
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:26:y:2003:i:4:p:533-553. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.