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The Armington General Equilibrium Model: Properties, Implications and Alternatives

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  • Xiao-Guang Zhang

    (Productivity Commission)

Abstract

The purpose of this paper is to contrast an Armington-based model with the traditional Heckscher-Ohlin framework familiar to textbook trade theory. The models concentrate on different aspects of the gains from trade, and both have deficiencies. The paper argues that by combining both frameworks, the hybrid Arminton-Heckscher-Ohlin model inherits the strengths of both models. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.

Suggested Citation

  • Xiao-Guang Zhang, 2008. "The Armington General Equilibrium Model: Properties, Implications and Alternatives," Staff Working Papers 0804, Productivity Commission, Government of Australia.
  • Handle: RePEc:ris:prodsw:0804
    as

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0019/76402/armingtongeneralequilibrium.pdf
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    File URL: http://www.pc.gov.au/research/staffworkingpaper/armingtongeneralequilibriummodel
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    References listed on IDEAS

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    2. David Black & Yi-Ping Tseng & Roger Wilkins, 2010. "The Decline In Male Employment In Australia: A Cohort Analysis," Australian Economic Papers, Wiley Blackwell, vol. 49(3), pages 180-199, September.
    3. Rob Euwals & Maurice Hogerbrugge, 2004. "Explaining the growth of part-time employment; factors of supply and demand," CPB Discussion Paper 31, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Rouault, Sophie, 2002. "Multiple jobholding and path-dependent employment regimes: Answering the qualification and protection needs of multiple job holders," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-201, Social Science Research Center Berlin (WZB).
    5. Patricia Apps, 2006. "The New Discrimination and Childcare," CEPR Discussion Papers 541, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    6. Buddelmeyer, Hielke & Mourre, Gilles & Ward-Warmedinger, Melanie E., 2004. "The Determinants of Part-Time Work in EU Countries: Empirical Investigations with Macro-Panel Data," IZA Discussion Papers 1361, Institute for the Study of Labor (IZA).
    7. Mellow, Wesley & Sider, Hal, 1983. "Accuracy of Response in Labor Market Surveys: Evidence and Implications," Journal of Labor Economics, University of Chicago Press, vol. 1(4), pages 331-344, October.
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    Cited by:

    1. Peter B. Dixon & Maureen T. Rimmer, 2008. "Welfare effects of unilateral changes in tariffs: the case of Motor vehicles and parts in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-177, Victoria University, Centre of Policy Studies/IMPACT Centre.

    More about this item

    Keywords

    trade; tariffs; economic modelling;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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