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Terms of trade, tariffs, and labor market adjustment in developing countries (الإنجليزية)

A three-goods model (importables, exportables, and nontradables) is used to analyze labor market adjustment to changes in the terms of trade and import tariffs for a small, open economy. First, a three-goods, four-factor model (labor, and capital specific to each sector) is developed and used to investigate how an exogenously generated change in a country's terms of trade affects labor allocation and wages in the short run. Next, a more traditional...
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