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Endogenous labour market imperfection and the HOS model: some counterintuitive trade-theoretic results

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  • Chaudhuri, Sarbajit

Abstract

This paper introduces endogenous labour market imperfection in an otherwise Heckscher-Ohlin-Samuelson (HOS) model. It demonstrates that this framework satisfies the Stolper-Samuelson theorem and the magnification effect and that it is capable of producing certain trade-theoretic results which are contrary to the standard HOS and the Corden and Findlay (1975) results.

Suggested Citation

  • Chaudhuri, Sarbajit, 2012. "Endogenous labour market imperfection and the HOS model: some counterintuitive trade-theoretic results," MPRA Paper 36073, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36073
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    References listed on IDEAS

    as
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    5. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    6. Eaton, Jonathan & Panagariya, Arvind, 1979. "Gains from trade under variable returns to scale, commodity taxation, tariffs and factor market distortions," Journal of International Economics, Elsevier, vol. 9(4), pages 481-501, November.
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    8. Raveendra N. Batra, 1973. "Studies in the Pure Theory of International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01423-1.
    9. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Labour market imperfection; Heckscher-Ohlin-Samuelson model; Corden and Findlay model; foreign capital; trade liberalization; general equilibrium;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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