The effects of technical progress on relative factor prices in the two-country, two-good, two-factor Heckscher-Ohlin model are investigated. Technical progress is classified according to factor-augmenting bias, factor-using bias, and sector bias. A complete set of relations between technical progress parameters and relative factor prices, depending on the elasticities of substitution in demand ...

Contrary to conventional wisdom, this paper shows that a high-wage economy can paradoxically reduce its level of aggregate unemployment by engaging in international trade with low-wage country. We demonstrate possibility after introducing minimum wage into the basic specific-factor model (with immobile capital and mobile labor), even though opposite result is known arise longer-run framework st...

This paper uses three years of individual-level data to analyze the determinants of individual preferences over trade and immigration policies in the United States. Different economic models make contrasting predictions about what forces should shape these preferences. We have four main empirical results. First, we find that factor type dominates industry of employment in explaining support for...

The paper retrospectively analyses the issue of impact international trade on developed countries’ labour markets in 1990s, when majority academic opinion denied role misfortunes unskilled workers. An analytical framework is proposed which intra-industry explained terms factor endowments and intensities goods. Unlike traditional Heckscher–Ohlin model inter-industry trade, suggested here more co...

The rising inequality of income distribution has attracted world’s attention since Krugman [2007] criticized the rising inequality in the U.S. especially after the 1980s. This phenomenon became well known worldwide when “Occupy Wall Street” movement broke out in 2011, and has been discussed in Stiglitz [2012] and Piketty [2013]. It must be noted, first, that their analysis is econometric or pol...

Abstract T his paper explains bilateral trade patterns between South Korea and thirteen OPEC member countries over the period 1980-2014 using a gravity model. The estimation results show that the gravity equation fits the data reasonably well. We confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - ...

abstract t his paper explains bilateral trade patterns between south korea and thirteen opec member countries over the period 1980-2014 using a gravity model. the estimation results show that the gravity equation fits the data reasonably well. we confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - gdp, income (gdp per c...