Pdf on the distributive effects of terms of trade shocks the


Distributlve introduce non-tradable goods to the Heckscher-Ohlin-Samuelson (HOS) model to study the distributive effects of terms of trade shocks. Ot show that the employment of resources in activities producing exclusively for the local market induces a crucial association between domestic spending and factor demand and prices, which is absent in the usual HOS framework.

Specifically, in a two-sector economy (producing only exportable and non-tradable goods) there are no redistributive effects of external terms of trade shifts-i.e. no Stolper-Samuelson-type of effect. By extending the model to the domestic production of a third, importable good, we show that distributional tensions arise. Trade Publishing.Definition: Trade publishing is an industry term that refers to the business of publishing books for a general audience.




Pdf on the distributive effects of terms of trade shocks the

The terms pdf the of shocks on trade of effects distributive