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Integrated equilibrium in a Heckscher-Ohlin-Ricardo model

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  • K T Soo

Abstract

This paper shows that, unlike in the Heckscher-Ohlin model, the integrated equilibrium in the Davis (1995) Heckscher-Ohlin-Ricardo model depends crucially on demand patterns. The area defining the integrated equilibrium is smaller, the greater is the weight placed by consumers on the good that has different technologies across countries.

Suggested Citation

  • K T Soo, 2005. "Integrated equilibrium in a Heckscher-Ohlin-Ricardo model," Working Papers 570284, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:570284
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/IntegratedEquilibrium.pdf
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    References listed on IDEAS

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    1. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    2. Davis, Donald R., 1995. "Intra-industry trade: A Heckscher-Ohlin-Ricardo approach," Journal of International Economics, Elsevier, vol. 39(3-4), pages 201-226, November.
    3. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
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