TY - JOUR AU - Svensson, Lars E.O. TI - Factor Trade and Goods Trade JF - National Bureau of Economic Research Working Paper Series VL - No. 999 PY - 1982 Y2 - October 1982 DO - 10.3386/w0999 UR - http://www.nber.org/papers/w0999 L1 - http://www.nber.org/papers/w0999.pdf N1 - Author contact info: Lars E.O. Svensson Department of Economics Stockholm School of Economics P.O. Box 6501 SE-11383 Stockholm Sweden E-Mail: Leosven@gmail.com AB - Previous work by Dixit and Woodland on the effect of inter-country factor endowment differences on goods trade is extended to include simultaneous factor trade and goods trade. The goods trade pattern with factor trade is compared to that without factor trade. It is for instance shown that goods trade and factor trade may be substitutes or complements, depending upon whether traded and nontraded factors are "cooperative" or "non-cooperative." The asymmetry between the effects of differences in endowments of traded and differences in endowments of nontraded factors is emphasized. ER -