This paper develops a new model with heterogeneous firms under perfect competition in Heckscher-Ohlin setting. We derive novel prediction regarding the effect of minimum wages on selection, namely that binding wage will raise (or lower) TFP at firm and industry level depending whether capital intensity entry costs exceeds (falls short of) production. Exploiting rich regional variation across Ch...

Motivated by increasing trade and fragmentation of production across countries, accompanied income convergence many emerging economies, we build a dynamic two-country model featuring sequential, multi-stage capital accumulation. As costs decline over time, global-value-chain (GVC) expands particularly more in the faster-growing country, consistent with empirical pattern. Via Heckscher–Ohlin for...

In this paper we try to explain how well trading models in general can be used for international arms trading. We will study the evolution of main throughout history order see what ways they may adequate security and defence material trading, mainly focus Heckscher-Ohlin model. understand military equipment are going analyze industry’s composition, studying cases exporters importers, motivates ...

In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by Dixit Stiglitz (1977) with applications in international trade Krugman (1979,1980), modeling fixed variable costs production terms underlying use skilled unskilled labor a single good model. This is different from earlier work on multi sector variant cum Heckscher-Ohlin-Samuel...

the augmented gravity model was employed to determine iran's trading model and agricultural export directions in the case of cross section analysis in 2005 for 64 countries which are considered as iran's main export market. besides, another explanatory variable named trade conformity index (tci) was added to the model. this index was employed to identify iran's trading model. als...

— This paper focuses on the question of whether labor standards can affect comparative advantage in unskilled-labor-intensive goods in developing countries, and thereby influence trade flows. Using a Heckscher–Ohlin framework, the effects of low labor standards depend on the type of standard: Forced and child labor lead to an increase in the endowment of unskilled labor, and hence improve compa...

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...

We illustrate a new source of comparative advantage that is generated by countries’ different ability to adjust technological change. Our model introduces substitution workers in codifiable (routine) tasks with more efficient machines, process extensively documented the labor literature, into canonical 2 × Heckscher-Ohlin model. key hypothesis reallocation across subject frictions, importance whic...