Throughout the OECD, the operations of labour markets in the 1970s and 1980s have produced outcomes unfavourable to labour in general and unskilled labour in particular. In the US, this has been reflected in declining real wages, with a slight increase in the unemployment rate. In other countries, it has been reflected in a slowdown in real wages growth and a severe increase in unemployment. At...

There are two principal theories of why countries or regions trade: comparative advantage and increasing returns to scale. Yet there is virtually no empirical work that assesses the relative importance of these two theories in accounting for production structure and trade. We use a framework that nests an increasing returns model of economic geography featuring ‘home market effects’ with that o...

The burden sharing of pollution abatement costs raises the issue of how to share the costs between entities (country, region or industry) and how the pollution permits should be distributed between the parties involved. This paper explores this issue in the framework of a dynamic endogenous growth 2 sectors 2 regions 2 inputs Heckscher-Ohlin model of a small open multi-regional economy with an ...

On the one hand, the Stolper-Samuelson (SS) corollary of the Heckscher-Ohlin theorem predicts that both trade and FDI should take advantage of the abundance of low-skilled labour in DCs and so imply an increasing demand for domestic low skilled labour and hence decreasing within-country wage dispersion and income inequality (Wood, 1994 and 1997; for a critical view, see Milanovic, 2002). On the...

The study examines the significance of Pakistan-India trade, focusing on their trade potential, impediments to bilateral trade; political barriers and non-tariff barriers. For seven decades, troubles tensions in relations have directly affected ties between two countries. unresolved issues, especially dispute over Kashmir, which is bone contention countries, continue impede normalization thus l...

the concept of virtual water trade refers to transact of the water consumed for production of goods and agricultural products through international trade. the anthony allan introduced this concept to improve global water used efficiency. in this paper, the original theory of allen has been investigated through incorporating virtual water as a factor of production in heckscher-ohlin internationa...

The purpose of this research is to study the determinants export, import and overall trade performance. article employed panel gravity model along with analytical approaches fixed-effects, random-effects, Poisson Pseudo-Maximum-Likelihood (PPML) Heckman selection models. This analysis based on a data set from 1989 2015 (27 years) for total 20 selected largest leather importing partners. finding...

This paper focuses on three unresolved issues with regard to the impact of trade reform. First, many studies linking trade reform to long run growth are surprisingly fragile. To illustrate the problems with this literature, we examine a popular measure of openness w recently introduced by Sachs and Warner Sachs, J., Warner, A., 1995. Economic reform and the process of global integration. Brooki...

I In 1961 Burenstam Linder (1961) rocked the boat of the prevailing Heckscher-Ohlin trade theory by noting that much of international trade, particularly in manufactures, was among similar countries, not between countries with disparate factor endowments (as between rich and poor countries). His explanation was in terms of demand, more trade taking place among relatively rich countries with sim...