1994
DOI: 10.3386/w4940
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International Trade Theory: The Evidence

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Cited by 426 publications
(358 citation statements)
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“…From this it follows immediately that d ln w U / dπ = d ln w U / dπ = 0. This result, essentially similar to the factor price equalisation theorem (Samuelson 1953), is what Leamer and Levinsohn (1995) call factor price insensitivity. Wages are determined solely by prices through the zero profit condition (2).…”
Section: Two Output Goodssupporting
confidence: 58%
“…From this it follows immediately that d ln w U / dπ = d ln w U / dπ = 0. This result, essentially similar to the factor price equalisation theorem (Samuelson 1953), is what Leamer and Levinsohn (1995) call factor price insensitivity. Wages are determined solely by prices through the zero profit condition (2).…”
Section: Two Output Goodssupporting
confidence: 58%
“…In an open-economy Heckscher-Ohlin model, trade can offset the impact of immigration as the output mix of tradable goods changes in line with changes in factor supplies. Assuming that the local economy is not large relative to the rest of the world and/or that inflows of immigrants are small relative to the local labor supply, local wages will not be affected--the "factor price insensitivity" result (Leamer and Levinsohn 1995). In an amended open-economy model in which skills of workers are highly specific to particular industries (Grossman and Helpman 1994;Jones 1971), the predictions match those from the FP analysis only as long as all goods are traded (then natives will be disadvantaged by immigrants of similar skills levels, regardless of industry specificity among the highly skilled).…”
Section: Labor Market Competitionmentioning
confidence: 99%
“…2 Table 1 gives an overview of earlier empirical work using gravitytype models. (For surveys see also Frankel (1997) or Leamer and Levinsohn (1995) lematic. We will pick up this argument below (Section 3) in a more formal framework.…”
Section: International Tradementioning
confidence: 99%