Were Trade and Factor Mobility Substitutes in History?
49 Pages Posted: 10 Jun 2000 Last revised: 24 Jul 2022
Date Written: June 1997
Abstract
Trade theorists have come to understand that their theory is ambiguous on the question: Are trade and factor flows substitutes? While this sounds like an open invitation for empirical research, hardly any serious econometric work has appeared in the literature. This paper uses history to fill the gap. It treats the experience of the Atlantic economy between 1870 and 1940 as panel data with almost seven hundred observations. When shorter run business cycles and long swings' are extracted from the panel data, substitutability is soundly rejected. When secular relationships are extracted over longer time periods and across trading partners, once again substitutability is soundly rejected. Finally, the paper explores immigration policy and finds that policy makers never behaved as if they viewed trade and immigration as substitutes.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Wages Around the World: Pay Across Occupations and Countries
-
International Migration and the Integration of Labor Markets
-
The Evolution of Global Labor Markets Since 1830 Background Evidence and Hypotheses
-
International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows
-
Demographic and Economic Pressure on Emigration Out of Africa
-
Demographic and Economic Pressure on Emigration Out of Africa
-
Where Do U.S. Immigrants Come from, and Why?
By Ximena Clark, Timothy J. Hatton, ...