DOES THE STOLPER-SAMUELSON THEOREM HOLD WITH LESS TRADE DISTORTION?: A COMPUTABLE GENERAL EQUILIBRIUM

This paper examines the effects of agricultural trade policy changes in the Brazilian agriculture using CGE model. An extended Salter-Swan model is employed to verify if the Stolper-Samuelson theorem holds and the consequences in terms of prices, production and resources allocation. Results show that the Stolper-Samuelson hypothesis is reversed when imports and domestic goods are poor substitutes. The reduction in the import tariff increases national income, implying that inappropriate trade policy adjustments can stand in the way of promoting rapid and equitable growth of the economy.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22173
Total Pages:
22
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-04-26

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