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Factor Prices and the Factor Content of Trade Revisited: What's the Use?

Author

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  • Deardorff, A.V.

Abstract

This paper examines the usefulness of a result of Deardorff and Staiger (1988), who showed that the factor content of trade can be interpreted under certain assumptions as indicating the nature of the factor price adjustments that can, in a specified sense, be attributed to that trade. This paper elaborates on the sense in which this result says anything about the factor market effects of trade. It also examines several of the assumptions that were used by Deardorff and Staiger to determine whether they can be relaxed.

Suggested Citation

  • Deardorff, A.V., 1997. "Factor Prices and the Factor Content of Trade Revisited: What's the Use?," Working Papers 409, Research Seminar in International Economics, University of Michigan.
    • Handle: RePEc:mie:wpaper:409
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    Cited by:

    1. repec:eee:labchp:v:3:y:1999:i:pb:p:2215-2288 is not listed on IDEAS
    2. Rodolfo Helg & Riccardo Faini & Anna M. Falzoni & Marzio Galeotti & Alessandro Turrini, 2001. "Importing Jobs And Exporting Firms? On The Wage And Employment Implications Of Italy’S Trade And Foreign Direct Investment Flows," International Trade 0103001, University Library of Munich, Germany.
    3. Robert E. Baldwin, 2001. "Inferring Relative Factor Price Changes from Quantitative Data," NBER Chapters, in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 47-70, National Bureau of Economic Research, Inc.
    4. Jonathan E. Haskel, 2000. "Trade and Labor Approaches to Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 397-408, August.
    5. Mark S. Leclair, 2002. "Export Composition and Manufacturing Employment in the US during the Economic Downturn of 1991-92," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 147-156, June.
    6. Alan Deardorff & Ralph Lattimore, 1999. "Trade and factor-market effects of New Zealand's reforms," New Zealand Economic Papers, Taylor & Francis Journals, vol. 33(1), pages 71-91.

    More about this item

    Keywords

    TRADE ; WAGES;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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