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Trade Liberalisation and Factor Mobility: An Overview

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  • Anthony J. 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.

Suggested Citation

  • Anthony J. Venables, 1997. "Trade Liberalisation and Factor Mobility: An Overview," CEP Discussion Papers dp0352, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0352
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    Cited by:

    1. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005," Discussion Papers of DIW Berlin 481, DIW Berlin, German Institute for Economic Research.
    2. Katarzyna Budnik, 2011. "Temporary migration in theories of international mobility of labour," Bank i Kredyt, Narodowy Bank Polski, vol. 42(6), pages 7-48.
    3. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
    4. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    5. Collins, William J & O'Rourke, Kevin Hjortshøj & Williamson, Jeffrey G, 1997. "Were Trade and Factor Mobility Substitutes in History?," CEPR Discussion Papers 1661, C.E.P.R. Discussion Papers.
    6. Herbert Brücker, 2003. "Die Arbeitsmarkteffekte der Ost-West-Migration: theoretische Überlegungen, Simulationen und empirische Befunde," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 579-593.
    7. Sule Akkoyunlu & Boriss Siliverstovs, 2006. "Modelling Turkish Migration to Germany," Discussion Papers of DIW Berlin 595, DIW Berlin, German Institute for Economic Research.
    8. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    9. Marzenna Weresa, 2001. "The Impact of Foreign Direct Investment on Poland's Trade with the European Union," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 71-83.

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