TY - CHAP
T1 - Specific factor models and dynamics in international trade
AU - Hu, Yunfang
AU - Nishimura, Kazuo
AU - Shimomura, Koji
PY - 2008/1/1
Y1 - 2008/1/1
N2 - 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.
AB - 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.
KW - Dynamics
KW - International trade
KW - Specific-factor model
UR - http://www.scopus.com/inward/record.url?scp=84887800811&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84887800811&partnerID=8YFLogxK
U2 - 10.1016/S1574-8715(08)04010-4
DO - 10.1016/S1574-8715(08)04010-4
M3 - Chapter
AN - SCOPUS:84887800811
SN - 9780444531902
T3 - Frontiers of Economics and Globalization
SP - 191
EP - 207
BT - Contemporary and Emerging Issues in Trade Theory and Policy
PB - Emerald Group Publishing Ltd.
ER -