| Author: | Batra, R. N. Beladi, H. |
| Title: | Pattern of trade between underemployed economies |
| Journal: | Economica
1990 : NOV, VOL. 57:228, p. 485-93 |
| Index terms: | TRADE TRADE POLICY EMPLOYMENT WAGE DETERMINATION LABOUR SUPPLY CAPITAL ASSETS |
| Language: | eng |
| Abstract: | The factors determining the pattern of trade between underemployed economies are analysed using a two-sector, three-sector model in which land is a specific factor and wages are institutionally determined. It was found that a low-wage and land-abundant country exports the land-using, labour-intensive product to a high-wage, capital-abundant country. On the other hand, if the low-wage country is said to be labour-abundant, than a labour-abundant country exports the land-using, labour-intensive goods and the capital-rich country exports the capital-intensive goods. There are conditions under which a high-wage, capital-rich country may export the labour-intensive product /the Leontief Paradox/. |
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