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On the gains from an expansion in factor mobility in bilateral trade

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  • Paul Comolli

Abstract

A single composite-good two-factor input production model is employed to investigate the gains from an expansion in factor mobility between two countries with different neoclassical technologies. Necessary and sufficient conditions for both countries to gain from an expansion in factor mobility are established. The analysis then develops a criterion based on market information for predicting whether a country would gain from an expansion in factor mobility. Finally, the income distributional effects within and between countries of an expansion in factor mobility are discussed.

Suggested Citation

  • Paul Comolli, 1999. "On the gains from an expansion in factor mobility in bilateral trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(4), pages 343-358.
    • Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:343-358
    DOI: 10.1080/09638199900000021
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