Free-Trade Agreements in a Model of Trade, Migration and Politics
Free-Trade Agreements in a Model of Trade, Migration and Politics作者机构:Department of Economics Michigan State University East Lansing M1 48824 USA Department of Economics Mersin University Ciftlikkoy Yenisehir 33342 Mersin Turkey
出 版 物:《Frontiers of Economics in China-Selected Publications from Chinese Universities》 (中国高等学校学术文摘·经济学(英文版))
年 卷 期:2018年第13卷第1期
页 面:15-31页
学科分类:0202[经济学-应用经济学] 02[经济学] 0201[经济学-理论经济学] 020105[经济学-世界经济]
基 金:University of Kentucky, UK University of Washington, UW
主 题:free trade migration Heckscher-Ohlin labor-abundant capital-abundant
摘 要:This paper uses a probabilistic voting model to investigate voting for a free-trade agreement between a labor-abundant country and a capital-abundant country. Migration from the labor-abundant country to the capital-abundant country increases the probability of a free-trade agreement, with lower migration costs leading to more migration and a higher free-trade probability. On the other hand, if a lower probability of free trade is caused by an increased voter bias against free-trade candidates, then there is less migration. A dynamic extension of the model is also investigated.