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SIM, Seung-Gyu
Department Aoyama Gakuin University Department of International Economics, School of International Politics, Economics and Communication Position Professor |
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| Language | English |
| Publication Date | 2017/01 |
| Type | Academic Journal |
| Peer Review | Peer reviewed |
| Title | Trade Preferences and Political Equilibrium Associated with Trade Liberalization |
| Contribution Type | Collaboration |
| Journal | The Journal of International Trade & Economic Development |
| Journal Type | Another Country |
| Publisher | Taylor and Francis |
| Volume, Issue, Page | 26,pp.361-384 |
| Author and coauthor | Shoya Ishimaru, Seung-Gyu Sim, and Soo Hyun Oh |
| Details | Developing a dynamic extension of the traditional Heckscher–Ohlin model with imperfect labor mobility and tracking overall dynamic paths from the autarky to free-trade steady states, we demonstrate that in the presence of inter-sectoral migration barrier, bilateral free-trade agreements can be welcomed (opposed) by the majority of workers in a capital-abundant (labor-abundant) country, which is inconsistent with the welfare prediction by Stolper and Samuelson. Our simulation experiments further reveal that preannounced and delayed implementation can facilitate a bilateral free-trade agreement by partially neutralizing short-run transitional gains and losses so as to persuade the losers to support the reform without affecting the beneficiaries’ trade preferences. |