Globalization and factor returns in competitive markets

Rod Falvey, Udo Kreickemeier

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

The standard competitive trade model, extended to include many goods and factors, is used to analyze the effect of goods and factor market integration on average international disparities in the real returns of internationally immobile factors. It is shown that goods market integration decreases international real return differentials for all factors. We derive sufficient conditions for this result to hold for the subgroup of internationally immobile factors as well. While there is a presumption for similar results to hold with international factor market integration, we show that this is true for international migration but in general not for international investment.

Original languageEnglish
Title of host publicationInternational Trade and Labor Markets
Subtitle of host publicationWelfare, Inequality, and Unemployment
EditorsUdo Kreickemeier
PublisherWorld Scientific Publishing
Pages3-26
Number of pages24
ISBN (Electronic)9789813224919
ISBN (Print)9789813224902
DOIs
Publication statusPublished - 1 Jan 2017

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Competitive market
Factors
Globalization
Market integration
Factor markets
Real returns
International factors
International migration
International investments

Cite this

Falvey, R., & Kreickemeier, U. (2017). Globalization and factor returns in competitive markets. In U. Kreickemeier (Ed.), International Trade and Labor Markets: Welfare, Inequality, and Unemployment (pp. 3-26). World Scientific Publishing. https://doi.org/10.1142/9789813224919_0001
Falvey, Rod ; Kreickemeier, Udo. / Globalization and factor returns in competitive markets. International Trade and Labor Markets: Welfare, Inequality, and Unemployment. editor / Udo Kreickemeier. World Scientific Publishing, 2017. pp. 3-26
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Falvey, R & Kreickemeier, U 2017, Globalization and factor returns in competitive markets. in U Kreickemeier (ed.), International Trade and Labor Markets: Welfare, Inequality, and Unemployment. World Scientific Publishing, pp. 3-26. https://doi.org/10.1142/9789813224919_0001

Globalization and factor returns in competitive markets. / Falvey, Rod; Kreickemeier, Udo.

International Trade and Labor Markets: Welfare, Inequality, and Unemployment. ed. / Udo Kreickemeier. World Scientific Publishing, 2017. p. 3-26.

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

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Falvey R, Kreickemeier U. Globalization and factor returns in competitive markets. In Kreickemeier U, editor, International Trade and Labor Markets: Welfare, Inequality, and Unemployment. World Scientific Publishing. 2017. p. 3-26 https://doi.org/10.1142/9789813224919_0001