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On Types of Trade,Adjustment of Labor and Welfare Gains During Asymmetric Liberalizations

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  • Yener Kandogan

Abstract

This paper modifies the two-industry, two-country Heckscher-Ohlin model with intermediate goods to decompose trade into its horizontal and vertical intra-industry, as well as inter-industry parts. Acknowledging that liberalization affects each type of trade differently, and that changes in each imply labor adjustment of different magnitudes, the paper analyzes the effects of widely observed asymmetries in liberalization policies. The paper concludes with the implications of the model for the liberalization between the East and the West through the Europe Agreements.

Suggested Citation

  • Yener Kandogan, 2003. "On Types of Trade,Adjustment of Labor and Welfare Gains During Asymmetric Liberalizations," William Davidson Institute Working Papers Series 2003-568, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-568
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Trade types; Adjustment; Asymmetric Liberalization; Europe Agreements;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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