Factor Price Equalization: Theory and Evidence
نویسندگان
چکیده
منابع مشابه
Factor Price Equalization (FPE) Implies Product Quality Equalization (PQE)
This paper examines the issue of the effect of international trade on quality choice by firms in a factor-endowment framework. Factor price equalization implies product quality equalization. In the NorthSouth context it means that the South catches up with the North in product quality due to the competitive pressure from international trade, not because of technology adoption. Free trade may in...
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Factor price equality across countries is an important implication of the Heckscher-Ohlin-Samuelson model of international trade. Although an influential theoretical result, the model has received surprisingly little empirical support. Burgman and Geppert (1993) argue that this might be due to the neglect of the nonstationarity property of the time series under consideration. Using a cointegrat...
متن کاملHow Likely Is Factor Price Equalization?
The idea of treating factor price equalization as a situation, where the distribution of factors among countries is compatible with an equilibrium in an integrated world economy, has been refined to give the so-called lens condition for factor price equalization. In this paper, we show that the lens condition may be used to give estimates for the probability of factor price equalization when fa...
متن کاملThe Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States
Recent literature on the labor-market effects of U.S. immigration tends to find little correlation between regional immigrant inflows and changes in relative regional wages. In this paper we examine whether immigration, or endowment shocks more generally, altered U.S. regional output mixes as predicted by the Rybczynski Theorem of Heckscher-Ohlin (HO) trade theory. This theorem describes how re...
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ژورنال
عنوان ژورنال: Journal of Economic Integration
سال: 1993
ISSN: 1225-651X,1976-5525
DOI: 10.11130/jei.1993.8.1.1