Abstract
Based on the Jones (1971) model, we construct two dynamic models of international trade in which the rate of time preference is either constant or time-varying. The main purpose is to study whether and under what conditions the results derived in the Jones model still hold in the dynamic framework. It is shown that the results of dynamic models may be similar or different to those obtained in the static model. For example, it is possible that, in both static and dynamic models, an increase in the commodity price raises this commodity's output and the return to the specific factor in this sector. However, the effects on the wage rate may be different due to the factor accumulation impact in the dynamic framework.
| Original language | English |
|---|---|
| Title of host publication | Contemporary and Emerging Issues in Trade Theory and Policy |
| Publisher | Emerald Group Publishing Ltd. |
| Pages | 191-207 |
| Number of pages | 17 |
| ISBN (Print) | 9780444531902 |
| DOIs | |
| Publication status | Published - 2008 Jan 1 |
Publication series
| Name | Frontiers of Economics and Globalization |
|---|---|
| Volume | 4 |
| ISSN (Print) | 1574-8715 |
Keywords
- Dynamics
- International trade
- Specific-factor model
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
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Cite this
Hu, Y., Nishimura, K., & Shimomura, K. (2008). Specific factor models and dynamics in international trade. In Contemporary and Emerging Issues in Trade Theory and Policy (pp. 191-207). (Frontiers of Economics and Globalization; Vol. 4). Emerald Group Publishing Ltd.. https://doi.org/10.1016/S1574-8715(08)04010-4