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Trade policy in a dynamic Heckscher-Ohlin model

Submitted by Heron Rios (heronrios@hotmail.com) on 2016-07-01T19:11:04Z
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Previous issue date: 2016-03-31 / The Import Substitution Process in Latin Amer ica was an attempt to enhance GDP growth and productivity by rising trade barriers upon capital-intensive products. Our main goal is to analyze how an increase in import tariff on a particular type of good affects the production choices and trade pattern of an economy. We develop an extension of the dynamic Heckscher-Ohlin model – a combination of a static two goods, two-factor Heckscher-Ohlin model and a two-sector growth model – allowing for import tariff. We then calibrate the closed economy model to the US. The results show that the economy will produce less of both consumption and investment goods under autarky for low and high levels of capital stock per worker. We also find that total GDP may be lower under free trade in comparison to autarky.

Identiferoai:union.ndltd.org:IBICT/oai:bibliotecadigital.fgv.br:10438/16659
Date31 March 2016
CreatorsRios, Heron Marcos Teixeira
ContributorsFranco Neto, Afonso Arinos de Mello, Pinheiro, Maurício Canêdo, Escolas::EPGE, FGV, Ferreira, Pedro Cavalcanti
Source SetsIBICT Brazilian ETDs
LanguageEnglish
Detected LanguageEnglish
Typeinfo:eu-repo/semantics/publishedVersion, info:eu-repo/semantics/masterThesis
Sourcereponame:Repositório Institucional do FGV, instname:Fundação Getulio Vargas, instacron:FGV
Rightsinfo:eu-repo/semantics/openAccess

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