NAFTA and Industrial Adjustment: A Specific‐Factors Model of Production

Thompson, Henry

doi:10.1111/j.1468-2257.1996.tb00893.x

Cited by 11 publications

(3 citation statements)

References 6 publications

(3 reference statements)

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“…The first stage in employing a specific factor model is to compute factor shares, θ, and industry shares, λ, as in Thompson [12] for the following four labor skill groups:…”

Section: Derivation Of Factor Shares and Industry Shares In Ghanamentioning

confidence: 99%

The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis

Yeboah,

Amoah,

Fuseini

et al. 2023

Sustainability

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The Ghanaian forestry sector has experienced a paradigm shift toward resilient and sustainable forest management practices through climate change mitigation and adaptation policies. Ghana has acknowledged the urgent need to address these issues via comprehensive policy measures as a nation that is vulnerable to the adverse effects of climate change. To assess economy-wide impacts, this paper employs a computable general equilibrium with a static specific factor model that can be readily simulated with various vectors of price changes. The model uses a competitive production structure that assumes constant returns, full employment, competitive pricing, and perfect labor mobility across sectors. Factor shares, industry shares, and substitution matrices from 2022 Labor Force Report’s data were constructed for four skilled groups (managers, professionals, service, and production) across industry, service, the rest of agriculture, and forestry sectors. Predictions of price increases from climate change mitigation policies compliance were simulated for the long run and short run. Forestry, agricultural, and industrial sectors will enjoy higher prices under a green economy, but these would not translate into higher wages. It is rather capital owners in agriculture and forestry that would benefit. Wage adjustments to the green economy are smaller than what might be expected in a partial equilibrium model.

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“…The first stage in employing a specific factor model is to compute factor shares, θ, and industry shares, λ, as in Thompson [12] for the following four labor skill groups:…”

Section: Derivation Of Factor Shares and Industry Shares In Ghanamentioning

confidence: 99%

The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis

Yeboah,

Amoah,

Fuseini

et al. 2023

Sustainability

View full text Add to dashboard Cite

show abstract

“…The comparative statics model is based on factor shares and industry shares. Thompson (1996) examined the effects of NAFTA in a SF model for Alabama; Thompson and Toledo (2001) analysed the effects of a potential merger between the Andean Market and MERCOSUR in a SF model for Bolivia, and Toledo (2004) estimated the magnitude of the changes in output and wages in a SF model for Colombia.…”

Section: Introductionmentioning

confidence: 99%

Workers and trade liberalization: simulating the potential impact of the FTAA on Venezuela's output and wages

Toledo

2006

Applied Economics

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The Specific Factors model of production and trade with seven skilled labour categories and specific capital in three leading sectors of the Venezuelan economy is used to produce comparative static elasticities of changing prices on factor prices and output as a result of the emerging Free Trade Agreement of the Americas (FTAA). Results show that every labour group except production labour is projected to lose under free trade, while manufacturing capital gains at the expense of capital in agriculture and services due to a projected increase in export demand. Adjustments to free trade are large implying the importance of economic policy in the transition period to free trade.

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“…Immobile capital is specific to its industry and the specific factors model is often characterized as the short run. The present model is much more disaggregated than other specifications in the literature such as Thompson (1994, 1996) or Thompson and Toledo (2001).…”

Section: Introductionmentioning

confidence: 99%

Tariff Elimination and the Wage Gap in an Industrial Specific Factors Model*

Thompson

Francis

2009

Rev International Economics

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A specific factors model of 458 US manufacturing industries simulates the effects of eliminating manufacturing tariffs on unskilled and skilled wages. The model assumes constant elasticity substitution, industry-specific capital inputs, and mobile unskilled and skilled labor. Tariff elimination slightly lowers both unskilled and skilled wages, and increases the skilled wage gap. Industry outputs and capital returns absorb the negative impact of the falling tariffs with losses concentrated in more highly protected industries and most industries enjoying small positive outcomes. Copyright � 2009 The Authors. Journal compilation � 2009 Blackwell Publishing Ltd.

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NAFTA and Industrial Adjustment: A Specific‐Factors Model of Production

Cited by 11 publications

References 6 publications

The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis

The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis

Workers and trade liberalization: simulating the potential impact of the FTAA on Venezuela's output and wages

Tariff Elimination and the Wage Gap in an Industrial Specific Factors Model*

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