The two-sector production model is generalized to accommodate any degree of mobility in the two factors. The model provides a convenient framework for exploring the manner in which factor mobilities interact with factor intensities in resolving a number of basic issues in neoclassical trade theory. Particular emphasis is placed on determining the importance of absolute mobility when the two factors are equally mobile, and of the size of the mobility differential when factor intensities are equal across sectors.
ASJC Scopus subject areas
- Economics and Econometrics