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International factor mobility, minimum wage rates and factor-price equalization: a synthesis

Abstract:
This paper examines the behavior of a small open economy facing perfectly elastic supply curves for some of its productive factors. In particular, the paper derives some comparative statics properties of such economies, compares them with the properties of otherwise identical economies in which all factor prices are determined endogenously, and investigates the relationship between factor-price rigidities, factor-price equalization, and the pattern of specialization. Among the new results which are proved, it is shown that, as more and more factor-price rigidities are imposed on an economy, it comes "closer" to a state of factor-price equalization.
Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author


Publisher:
John Wiley & Sons, Inc.
Journal:
Quarterly journal of economics More from this journal
Volume:
100
Issue:
3
Pages:
551-570
Publication date:
1985-08-01
ISSN:
0033-5533


Language:
English
Keywords:
Subjects:
UUID:
uuid:f73cbdad-bbeb-47bc-9a21-22f50040ad8c
Local pid:
ora:2214
Deposit date:
2008-07-23
ARK identifier:

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