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

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  • Anderson, James E.
Abstract
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.

Suggested Citation

  • Anderson, James E., 2011. "The specific factors continuum model, with implications for globalization and income risk," Journal of International Economics, Elsevier, vol. 85(2), pages 174-185.
    • Handle: RePEc:eee:inecon:v:85:y:2011:i:2:p:174-185
    DOI: 10.1016/j.jinteco.2011.08.003
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    References listed on IDEAS

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    Cited by:

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    2. Francesco Caselli & Miklós Koren & Milan Lisicky & Silvana Tenreyro, 2020. "Diversification Through Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 449-502.
    3. Anderson, James E. & Yotov, Yoto V., 2020. "Short run gravity," Journal of International Economics, Elsevier, vol. 126(C).
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    6. Huang, Kaixing & Yan, Wenshou & Sim, Nicholas & Guo, Yuqing & Xie, Fang, 2022. "Can trade explain the rising trends in income inequality? Insights from 40 years of empirical studies," Economic Modelling, Elsevier, vol. 107(C).
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    10. Lijuan Yang & Weigong Du, 2023. "Catalyst or barrier? Heterogeneous effects of standards on agricultural trade between China and the Belt and Road countries," International Studies of Economics, John Wiley & Sons, vol. 18(1), pages 53-79, March.

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    More about this item

    Keywords

    Goods continuum; Extensive margin; Factoral terms of trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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