International Trade, Factor Mobility and Trade Costs.
We consider a Heckscher-Ohlin model in which goods and factors of production can be traded, but trade involves transactions costs. Goods trade alone will not equalize factor prices, so there is an incentive for trade in factors of production. Whether goods or factors are traded depends on endowments...
| Main Authors: | , |
|---|---|
| Format: | Working paper |
| Language: | English |
| Published: |
CEPR
1993
|