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Trade liberalisation and factor mobility: an overview

By Tony Venables

Abstract

This paper analyses the ways in which liberalisation of goods trade may change factor prices and the incentives for factor mobility. While trade liberalisation reduces the incentives for factor mobility in a Heckscher-Ohlin model, it may increase it in a specific factors model (in which there is a richer range of substitution/complementarity relationships between factors of production) and in models in which there are increasing returns to scale

Topics: HF Commerce
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 1997
OAI identifier: oai:eprints.lse.ac.uk:2313
Provided by: LSE Research Online
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