Specific factor models and dynamics in international trade

Yunfang Hu, Kazuo Nishimura, Koji Shimomura

    Research output: Chapter in Book/Report/Conference proceedingChapter

    2 Citations (Scopus)

    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 languageEnglish
    Title of host publicationContemporary and Emerging Issues in Trade Theory and Policy
    PublisherEmerald Group Publishing Ltd.
    Pages191-207
    Number of pages17
    ISBN (Print)9780444531902
    DOIs
    Publication statusPublished - 2008 Jan 1

    Publication series

    NameFrontiers of Economics and Globalization
    Volume4
    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