Artuc, ErhanChaudhuri, ShubhamMcLaren, John2012-03-302012-03-302008Journal of International Economics00221996https://hdl.handle.net/10986/4709We simulate numerically a trade model with labor mobility costs added, modeled in such a way as to generate gross flows in excess of net flows. Adjustment to a trade shock can be slow with plausible parameter values. In our base case, the economy moves 95% of the distance to the new steady state in approximately eight years. Gross flows have a large effect on this rate of adjustment and on the normative effects of trade. Announcing and delaying the liberalization can build--or destroy--a constituency for free trade. We study the conditions under which these contrasting outcomes occur.ENModels of Trade with Imperfect Competition and Scale Economies F120Trade PolicyInternational Trade Organizations F130Journal ArticleWorld Bank