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Pattern of Trade between Underemployed Economies

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  • Batra, Raveendra N
  • Beladi, Hamid

Abstract

In this paper, the authors analyze the factors determining the pattern of trade between underemployed economies. They find, among other things, that a low-wage, land-abundant country exports the land-using, labor-intensive product to a high-wage, capital-abundant country. The authors also find conditions under which a high-wage, capital-rich country may export the labor-intensive product (the Leonteif paradox). Copyright 1990 by The London School of Economics and Political Science.

Suggested Citation

  • Batra, Raveendra N & Beladi, Hamid, 1990. "Pattern of Trade between Underemployed Economies," Economica, London School of Economics and Political Science, vol. 57(228), pages 485-493, November.
    • Handle: RePEc:bla:econom:v:57:y:1990:i:228:p:485-93
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    Cited by:

    1. Agell, Jonas & Lundborg, Per, 1991. "Wage Fairness and International Trade Theory and Policy," Working Paper Series 299, Research Institute of Industrial Economics.
    2. Chi-Chur Chao & Chong Yip, 2001. "Non-traded goods and optimal trade policy in a cash-in-advance economy," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 23-37.
    3. Chen, Jiong, 1994. "The Harris-Todaro model of labor migration and its commercial policy implications," ISU General Staff Papers 1994010108000011587, Iowa State University, Department of Economics.
    4. Fluckiger, Yves & Hazari, Bharat R., 1997. "Unemployment, real exchange rate and welfare in a model with specific factors and non-traded goods," International Review of Economics & Finance, Elsevier, vol. 6(2), pages 203-218.
    5. Kwan Choi, E. & Beladi, Hamid, 1998. "Welfare reducing trade and optimal trade policy," Japan and the World Economy, Elsevier, vol. 10(2), pages 187-198, April.
    6. Jin, Hailong & Choi, Yoonho & Kwan Choi, E., 2016. "Unemployment and optimal currency intervention in an open economy," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 253-261.
    7. Choi, Eun Kwan & Chen, Jiong, 1997. "Employment risk and optimal trade policies," Discussion Papers, Series II 338, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".

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