AN EMPIRICAL ESTIMATION OF THE IMPACT OF FACTOR MARKET DISTORTIONS IN INTERNATIONAL TRADE
Abstract (summary)
The dissertation examined the impacts of factor market distortions on international trade flows. Since only industry specific distortions were of interest, the analysis was limited to the labor market. A wage determination model was developed, and the size of distortions in 73 manufacturing industries estimated.
The estimate was then used to correct the human capital measure used in tests of U.S. trade flows. It was found that factor market distortions are sufficient to cloud analyses of U.S. trade flows which ignore them. However, the results of the tests are unaltered.