Journal article
Price Equalization Does Not Imply Free Trade
Review - Federal Reserve Bank of St. Louis, Vol.97(4), pp.323-339
12/22/2015
DOI: 10.20955/r.2015.323-39
Abstract
In this article, the authors demonstrate the possibility of price equalization in a two-country world with barriers to international trade. For price equalization to occur when the countries are asymmetric, the country with higher productivity must also be the one with the lower trade barrier. A corollary of the authors' result is that small departures from purchasing power parity do not necessarily imply that world trade is mostly integrated. (JEL F11, F13, F14)
Details
- Title: Subtitle
- Price Equalization Does Not Imply Free Trade
- Creators
- Piyusha Mutreja - Federal Reserve Bank of St. LouisB Ravikumar - Federal Reserve Bank of St. LouisRaymond G. Riezman - University of IowaMichael J. Sposi - Federal Reserve Bank of St. Louis
- Resource Type
- Journal article
- Publication Details
- Review - Federal Reserve Bank of St. Louis, Vol.97(4), pp.323-339
- DOI
- 10.20955/r.2015.323-39
- ISSN
- 0014-9187
- eISSN
- 2163-4505
- Publisher
- Federal Reserve Bank St Louis
- Number of pages
- 17
- Language
- English
- Date published
- 12/22/2015
- Academic Unit
- Economics
- Record Identifier
- 9984963102302771
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