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

Chaudhuri, Sarbajit (2012): Endogenous labour market imperfection and the HOS model: some counterintuitive trade-theoretic results.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Labour market imperfection, Heckscher-Ohlin-Samuelson model, Corden and Findlay model, foreign capital, trade liberalization, general equilibrium
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F20 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

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