Factor price equalization in a world of many trading countries

Murray C. Kemp

Research output: Contribution to journalArticlepeer-review

Abstract

Conditions sufficient for factor price equalization within any non-trivial subset of trading countries are provided. The conditions are that (a) the factor endowment ratios of countries in the subset are all bounded by the factors-in-use ratios in an equilibrium of the hypothetical world economy in which factors are perfectly mobile within the subset, and that (b) in dimensions higher than two, 'either' the rank of the factors-in-use matrix is 2 'or' products do not outnumber factors and the factors-in-use matrix is of full rank.
Original languageEnglish
Pages (from-to)675-677
Number of pages3
JournalReview of International Economics
Volume14
Issue number4
DOIs
Publication statusPublished - 2006

Keywords

  • prices
  • commercial policy
  • international trade
  • international relations

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