Trade Preferences and Political Equilibrium Associated with Trade Liberalization
@article{Ishimaru2014TradePA, title={Trade Preferences and Political Equilibrium Associated with Trade Liberalization}, author={Shoya Ishimaru and S. H. Oh and Seung-Gyu Sim}, journal={International Political Economy: Trade Policy eJournal}, year={2014} }
ABSTRACTThis paper, motivated by the so-called North–South problem in trade, analyzes ex ante trade preferences and the source of potential political conflicts regarding trade liberalization. Developing a dynamic extension of the traditional Heckscher–Ohlin model with imperfect labor mobility and tracking overall dynamic paths from the autarky to free-trade steady states, we demonstrate that in the presence of inter-sectoral migration barrier, bilateral free-trade agreements can be welcomed… CONTINUE READING
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