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More specifically, if there is a higher cash requirement ratio in the exportable sector, then a decrease in export taxes raises the consumer price of exportables, which means that the monetary cost of buying exportables goes up (recall that the consumer must hold a fraction [[phi].
Intuitively, the rise in the price of exportables, following a reduction in export taxes, will increase the amount of money that the consumer must hold in order to buy the exportable goods.
There appear to be large and systematic differences between skill coefficients for HOS exportables and those for HOS import-competing industries.
13: averages for exportables and import-competing industries were used.