The specific factors continuum model, with implications for globalization and income risk

• 成果类型: Article
• 署名作者: Anderson, James E.
• 署名单位: Boston College; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.08.003
• 发表日期: 2011
• 页码: 174-185
• 关键词: Goods continuum; Extensive margin; Factoral terms of trade

摘要

This paper embeds the specific factors model in the goods continuum approach of Dornbusch et al. (1977, 1980) and applies it to analyze the effect of globalization on income risk. Globalization amplifies sector specific income risk induced by idiosyncratic sectoral technology shocks, but tends to reduce income risk to both mobile and immobile factors induced by aggregate technology shocks that differ by country. Aggregate risk bears most heavily on the poorest specific factors. (C) 2011 Elsevier B.V. All rights reserved.