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Trade and tradability


  • Thierfelder, Karen
  • Robinson, Sherman


We extend the Salter-Swan model to include both factor markets and semi-traded goods. In our model, changes in relative factor prices depend on changes in world commodity prices, factor endowments, and the trade balance. In contrast, only changes in world commodity prices can affect factor prices in the neoclassical trade model. The inclusion of semi-traded goods weakens the magnification effect of both the Stolper-Samuelson and Rybczynski theorems. When imports and domestic goods are poor substitutes, a characteristic of some commodities in developing countries, the sign of the Stolper-Samuelson effect is reversed. Authors' Abstract.

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  • Thierfelder, Karen & Robinson, Sherman, 2002. "Trade and tradability," TMD discussion papers 93, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:tmddps:93

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    References listed on IDEAS

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    Cited by:

    1. Bittencourt, Maurício Vaz Lobo, 2003. "Does The Stolper-Samuelson Theorem Hold With Less Trade Distortion?: A Computable General Equilibrium," 2003 Annual meeting, July 27-30, Montreal, Canada 22173, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


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