Arbeitspapier
Reallocation Gains in a Specific Factors Model with Firm Heterogeneity
We study firm heterogeneity in a specific factors model to address the effect of factor mobility on reallocation gains from trade. A model is proposed with Melitz-type firm heterogeneity with two sectors, two countries and two fixed factors and one factor mobile across sectors. Equilibrium in each sector can be concisely represented by a demand and supply equation and an FE and ZCP condition. Varying the substitution elasticity between the fixed and mobile factor, we show that the welfare gains from trade liberalization are larger in countries with lower substitution elasticity. Furthermore, it is shown that the immobile production factor in the comparative disadvantage sector can still gain from trade liberalization due to the reallocation effect.
- Language
-
Englisch
- Bibliographic citation
-
Series: wiiw Working Paper ; No. 77
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- Subject
-
firm heterogeneity
specific factors
reallocation gains from trade
- Event
-
Geistige Schöpfung
- (who)
-
Bekkers, Eddy
Stehrer, Robert
- Event
-
Veröffentlichung
- (who)
-
The Vienna Institute for International Economic Studies (wiiw)
- (where)
-
Vienna
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bekkers, Eddy
- Stehrer, Robert
- The Vienna Institute for International Economic Studies (wiiw)
Time of origin
- 2011
Other Objects (12)
Reallocation gains in a specific factors model with firm heterogeneity
Can Trade Explain the Sector Bias of Skill-biased Technical Change?
Firmen-, Beschäftigungs- und Lohnstrukturen in der österreichischen Außenwirtschaft mit Fokus auf KMUs - Erste Analysen basierend auf Mikrodaten
Employment, Education and Occupation Structures: A Framework for Forecasting
Industrial Specialization, Trade, and Labour Market Dynamics in a Multisectoral Model of Technological Progress
Expenditure Levels, Prices and Consumption Patterns in a Cross-Sectioin of Countries
Trade in Value Added and the Valued Added in Trade
Does the Home Bias Explain Missing Trade in Factors?
Source - assembly - sink: Value added flows in the global economy
Industrial specialisation, trade, and labour market dynamics in a multisectoral model of technological progress
The Effects of Factor- and Sector-biased Technical Change Revisited
Accounting Relations in Bilateral Value Added Trade
Reallocation gains in a specific factors model with firm heterogeneity
Can Trade Explain the Sector Bias of Skill-biased Technical Change?
Firmen-, Beschäftigungs- und Lohnstrukturen in der österreichischen Außenwirtschaft mit Fokus auf KMUs - Erste Analysen basierend auf Mikrodaten
Employment, Education and Occupation Structures: A Framework for Forecasting
Industrial Specialization, Trade, and Labour Market Dynamics in a Multisectoral Model of Technological Progress
Expenditure Levels, Prices and Consumption Patterns in a Cross-Sectioin of Countries
Trade in Value Added and the Valued Added in Trade
Does the Home Bias Explain Missing Trade in Factors?
Source - assembly - sink: Value added flows in the global economy
Industrial specialisation, trade, and labour market dynamics in a multisectoral model of technological progress
The Effects of Factor- and Sector-biased Technical Change Revisited
Accounting Relations in Bilateral Value Added Trade
Reallocation gains in a specific factors model with firm heterogeneity
Can Trade Explain the Sector Bias of Skill-biased Technical Change?
Firmen-, Beschäftigungs- und Lohnstrukturen in der österreichischen Außenwirtschaft mit Fokus auf KMUs - Erste Analysen basierend auf Mikrodaten
Employment, Education and Occupation Structures: A Framework for Forecasting
Industrial Specialization, Trade, and Labour Market Dynamics in a Multisectoral Model of Technological Progress
Expenditure Levels, Prices and Consumption Patterns in a Cross-Sectioin of Countries
Trade in Value Added and the Valued Added in Trade
Does the Home Bias Explain Missing Trade in Factors?
Source - assembly - sink: Value added flows in the global economy
Industrial specialisation, trade, and labour market dynamics in a multisectoral model of technological progress
The Effects of Factor- and Sector-biased Technical Change Revisited