Ethnic groups and the Heckscher-Ohlin-Samuelson trade model

Summary In this paper, we report a mode of the Harris-Todaro variety in which the labor force is composed of distinct and easily identifiable ethnic groups and in which capital is intersectorally mobile. We extend the central theorems of Heckscher-Ohlin-Samuelson trade theory to our model and also relate our results to other work.This work was conceived over several visits to The Pakistan Institute of Development Economics and finished at Berkeley where it was first presented at Professor Bardhan's Workshop in Development Economics. I am grateful to Professor Bardhan and to Director Naqvi and other Officers of the Institute for their hospitality and interest. I am also grateful to Naeem Siddiqui and Ray Reizman for several useful conversations; to S. Broca for many provocative comments on the HOS trade model; and, in particular, to one of three anonymous referees for her/his careful reading and detailed comments.