Most existing evidences for indeterminacy are obtained from analyzing models that do not consider trade. This paper considers an extension of Nishimura and Shimomura (Journal of Economic Theory, 2002) Heckscher-Ohlin framework by removing sector-specific externalities in one country while maintaining all other assumptions previously made by the authors. We show that even though indeterminacy ar...

This paper examines the effect of changes in factor endowments on income distribution in a four-factor, three-commodity model, in which two of the factors are region-specific while the other two are inter-regionally and inter-sectorally mobile. We provide an intermediate run model which bridges the gap between the Heckscher-Ohlin-Samuelson and the specific factor models, and which yields result...

During the last decades, some Asian countries have experienced a substantial change of their production structure leading to a change of their trade patterns. Whereas formerly high-tech goods were imported, they now constitute an important fraction of the countries' exports. Possible reasons for such a situation to arise are investigated in a model combining Ricardian and Heckscher-Ohlin effect...

This paper argues that international trade should affect local organization of production in a systematic way. By using the standard Heckscher-Ohlin-Samuelson model we show that the export sector is more likely to demonstrate fragmentation, entrepreneurship and outsourcing compared to the importcompeting sector in a typical labor abundant country. Liberal trade regime will promote entrepreneurs...

World-wide cross-country regressions are used to examine South Asia’ s export structure through the lens of Heckscher± Ohlin trade theory. By comparison with other regions, South Asia’s exports are unusually concentrated on labour-intensive manufactures. This distinctive export structure is shown to be the result mainly of South Asia’s distinctive combination of resources: by comparison with ot...

The theoretical insights of Heckscher and Ohlin, Feenstra and Hanson, and Tang and Wood between them provide a plausible explanation of the varied effects of globalisation on wage inequalities in developed and developing countries. In combination, these three theories can explain, among other things, why inequality has fallen in some developing countries but risen in others. Improved travel and...