Corpus ID: 3214340

Trade Liberalization , Welfare Prediction , and Political Conflicts ∗

  title={Trade Liberalization , Welfare Prediction , and Political Conflicts ∗},
  author={Shoya Ishimaru and Seung-Gyu Sim},
This paper analyzes ex ante trade preferences and the source of potential political conflicts regarding trade liberalization, by developing a dynamic extension of the traditional Heckscher-Ohlin model with imperfect labor mobility. Tracking overall dynamic paths from an arbitrary state to the post-reform steady state under rational expectation, we demonstrate ex ante trade preferences associated with trade liberalization and the implied patterns of potential political conflict crucially depend… CONTINUE READING

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