Income Redistribution Effects in the Presence of Region-Specific Factors
This paper examines the effect of changes in factor endowments on income Distribution in a four-factor, there-commodity model, in which two of the factors are region-specific while the other two are inter-regionally and inter-sectorally mobile. We provide an intermediate run model which bridges the gap between the Heckscher-Ohlin-Samuelson and the specific factor models, and which yields Results which differ from both these models. A simple derivation of factor Friendship patterns is made possible by exploiting the properties of the GNP Function. The procedure used may be applied to any n-commodity, (n+1)-factor Model. [F20]
Volume (Year): 13 (1999)
Issue (Month): 3 ()
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- Ruffin, Roy J., 1981. "Trade and factor movements with three factors and two goods," Economics Letters, Elsevier, vol. 7(2), pages 177-182.
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- Batra, Raveendra N. & Casas, Francisco R., 1976. "A synthesis of the Heckscher-Ohlin and the neoclassical models of international trade," Journal of International Economics, Elsevier, vol. 6(1), pages 21-38, February.
- Clark, Don P & Thompson, Henry, 1990. "Factor Migration and Income Distribution in Some Developing Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 42(2), pages 131-140, April.
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