Economic Development, Trade and Wages

2003 ◽  
Vol 4 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Ronald W. Jones ◽  
Sugata Marjit
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Wage Rate ◽  
Physical Capital ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Neighborhood Structure ◽  
Two Factors ◽  
Specific Factors

Abstract. We present models that allow the use of unskilled and skilled labor as well as capital and land. Thus agriculture, important in developing countries, can be included as well as two types of labor and a single (or two) type(s) of physical capital. The models are related to the simple 3x2 specific factors structure by means of what is called the linear neighborhood structure, wherein no activity uses more than two factors, and the two types of labor work in separated sectors, using in common a type of physical capital. We discuss how wage rate changes are related when endowments change, when agriculture becomes traded and prices rise, and when unskilled labor becomes educated and joins the ranks of skilled workers.

scholarly journals The World Technology Frontier

2006 ◽  
Vol 96 (3) ◽  
pp. 499-522 ◽  
Author(s):  
Francesco Caselli ◽  
Wilbur John Coleman
Keyword(s):  
Skilled Labor ◽  
Simple Explanation ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Poor Countries ◽  
Aggregate Production Function ◽  
Unskilled Workers ◽  
Cross Country ◽  
Rich Countries ◽  
Lower Income Countries

We study cross-country differences in the aggregate production function when skilled and unskilled labor are imperfect substitutes. We find that there is a skill bias in cross-country technology differences. Higher-income countries use skilled labor more efficiently than lower-income countries, while they use unskilled labor relatively and, possibly, absolutely less efficiently. We also propose a simple explanation for our findings: rich countries, which are skilled-labor abundant, choose technologies that are best suited to skilled workers; poor countries, which are unskilled-labor abundant, choose technologies more appropriate to unskilled workers. We discuss alternative explanations, such as capital-skill complementarity and differences in schooling quality.

scholarly journals Emigration, Immigration, and Skill Formation: The Case of a Midstream Country

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Kenji Kondoh
Keyword(s):  
Immigration Policy ◽  
Wage Rate ◽  
Income Tax ◽  
National Income ◽  
Developed Countries ◽  
Unskilled Labor ◽  
Small Country ◽  
Skilled Workers ◽  
Skill Formation ◽  
Unskilled Workers

This study theoretically investigates the economy of a small country that exports skilled labor to higher developed countries and simultaneously imports unskilled labor from lower developed countries. Compared with the free immigration case, if this country adopts an optimally controlled immigration policy by imposing income tax on immigrants to maximize national income, skills formation is negatively affected and the number of domestic unskilled workers increases. Moreover, under certain conditions, we can assert the counter-intuitive possibility that the wage rate of domestic unskilled workers may decrease but that of skilled workers may increase owing to the restriction of foreign unskilled workers.

scholarly journals PERLINDUNGAN KONSTITUSIONAL BAGI PEKERJA INDONESIA MENURUT HUKUM KETENAGAKERJAAN PADA ERA MASYARAKAT EKONOMI ASEAN (MEA)

2021 ◽  
Vol 3 (1) ◽  
pp. 1-8
Author(s):  
Abdul Hijar Anwar
Keyword(s):  
Mutual Recognition ◽  
Recipient Country ◽  
Free Flow ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Economic Community ◽  
Skilled Workers ◽  
Dental Practitioners ◽  
Mutual Recognition Arrangement ◽  
Asean Economic Community

At the end of 2015 the Asean Economic Community agreement came into effect which means that there will be a single ASEAN market and production base that has five basic elements, namely a) free flow of goods, b) free flow of services services), c) free flow of investment, d) free flow of capital, and e) free flow of skilled labor. In addition to the five basic elements, the single market and production base must also contain two important components, namely priority integration sectors (PIS) and the development of the food, agriculture and forestry sectors. In terms of the free flow of labor, not all workers can compete, the ASEAN economic community limits only to skilled workers. Through the 2015 ASEAN economic community, there will be job opportunities throughout ASEAN. Job seekers can easily enter and exit from one country to another without any obstacles from the recipient country. However, the ASEAN Economic Community Blueprint limits only to skilled labor and there is no discussion about unskilled labor. In an effort to support the transfer of skilled workers, all ASEAN member countries signed an MRA (Mutual Recognition Arrangement) on November 19, 2007 consisting of 8 MRAs, including engineering services, architectural services, nurse services ( nursing services), medical practitioners, dental practitioners, accountants services, surveying services, and tourism professionals. So it is feared that Indonesian workers do not compete with foreign workers

scholarly journals LINKAGES BETWEEN INTELLECTUAL PROPERTY RIGHTS REGIME AND INCOME INEQUALITY

2020 ◽  
Vol 5 (3) ◽  
pp. 88-107
Author(s):  
Swati Saini
Keyword(s):  
Developing Countries ◽  
Intellectual Property ◽  
Income Inequality ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Developed Countries ◽  
Skewed Distribution ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
The Impact

This paper examines the impact of strengthening Intellectual Property Rights (IPRs) on within-country income inequality for a cross-section of 65 developed and developing countries for the time period 1995-2009.The results indicated that strengthening of IPRs led to an increase in income inequality in WTO-member developing countries after they started modifying their national IPR regimes to conform to the TRIPs requirements. IPRs tend to raise income inequality by generating a more skewed distribution of wages. Stronger IPRs increased the demand for skilled labor force as it raised the return on R&D activities. This caused a relative increase in skilled labor wages, creating a wage bias in favor of skilled labor against unskilled labor, thus aggravating income inequality within a developing country. Moreover, the effect on inequality was more pronounced for developing countries that were experiencing higher per capita GDP growth rates. As for the developed countries included in the sample, the analysis seemed to suggest that IPRs led to a decline in income inequality over the study period.

Wage Inequality and Structure of Consumption Demand

2011 ◽  
Author(s):  
Takeo Hori
Keyword(s):  
Wage Inequality ◽  
Low Income ◽  
High Income ◽  
Skilled Labor ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Skilled And Unskilled Labor ◽  
Structure Of Consumption ◽  
Consumption Goods ◽  
Consumption Demand

We present a model in which there is a variety of consumption goods, of which high-income individuals purchase the expensive ones that low-income individuals cannot afford. Increases in the relative supply of skilled workers suggest relative increases in the number of high-income individuals in our model. Increases therefore in the relative supply of skilled workers induces changes in consumption demands, which indirectly affect both the labor demands of firms and the relative skilled wage. We show that a) if expensive goods purchased only by high-income individuals are more skilled labor intensive goods and b) if the substitution between skilled and unskilled labor is limited in the production of each good, then an exogenous increase in the relative supply of skilled workers raises the relative skilled wage.

In the Shadow of Violence: Lessons for Limited Access Societies

2012 ◽  
pp. 4-31 ◽  
Author(s):  
D. North ◽  
J. Wallis ◽  
S. Webb ◽  
B. Weingast
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Open Access ◽  
Political Stability ◽  
Gradual Transition ◽  
Major Conclusion ◽  
Economic Competition ◽  
Limited Access ◽  
Forthcoming Book ◽  
Personal Connections

The paper presents a summary of the forthcoming book by the authors and discusses the sample study of the 9 developing countries. While admitting the non-linearity of economic development they claim that the developing countries make a transition from the limited access orders (where the coalition of powerful elite groups plays a major role, that is based on personal connections and hampers free political and economic competition) to the open access orders with democratic government and efficient decentralized economic system. The major conclusion of this article is that what the limited access societies should do is not simply introducing open access institutions, but reorganizing the incentives of the elites so that to limit violence, provide economic and political stability and make a gradual transition to the open access order beneficial for the elites.

Physical capital stock, technological upgrading and modernisation in Hungary

2005 ◽  
Vol 55 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Andrea Szalavetz
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
Developed Countries ◽  
Point Of View ◽  
Technology Generation ◽  
Development Policies ◽  
Specific Factors ◽  
Physical Capital Accumulation

This paper discusses the relation between the quality and quantity indicators of physical capital and modernisation. While international academic literature emphasises the role of intangible factors enabling technology generation and absorption rather than that of physical capital accumulation, this paper argues that the quantity and quality of physical capital are important modernisation factors, particularly in the case of small, undercapitalised countries that recently integrated into the world economy. The paper shows that in Hungary, as opposed to developed countries, the technological upgrading of capital assets was not necessarily accompanied by the upgrading of human capital i.e. the thesis of capital skill complementarity did not apply to the first decade of transformation and capital accumulation in Hungary. Finally, the paper shows that there are large differences between the average technological levels of individual industries. The dualism of the Hungarian economy, which is also manifest in terms of differences in the size of individual industries' technological gaps, is a disadvantage from the point of view of competitiveness. The increasing differences in the size of the technological gaps can be explained not only with industry-specific factors, but also with the weakness of technology and regional development policies, as well as with institutional deficiencies.

A Successful Population Policy: Potentials and Constraints (Distinguishedl Lecture)

1993 ◽  
Vol 32 (4I) ◽  
pp. 411-431
Author(s):  
Hans-Rimbert Hemmer
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Population Growth ◽  
Capita Income ◽  
Population Policy ◽  
Mortality Rates ◽  
Per Capita Income ◽  
Access To Health Services ◽  
Industrial Countries ◽  
Per Capita

The current rapid population growth in many developing countries is the result of an historical process in the course of which mortality rates have fallen significantly but birthrates have remained constant or fallen only slightly. Whereas, in industrial countries, the drop in mortality rates, triggered by improvements in nutrition and progress in medicine and hygiene, was a reaction to economic development, which ensured that despite the concomitant growth in population no economic difficulties arose (the gross national product (GNP) grew faster than the population so that per capita income (PCI) continued to rise), the drop in mortality rates to be observed in developing countries over the last 60 years has been the result of exogenous influences: to a large degree the developing countries have imported the advances made in industrial countries in the fields of medicine and hygiene. Thus, the drop in mortality rates has not been the product of economic development; rather, it has occurred in isolation from it, thereby leading to a rise in population unaccompanied by economic growth. Growth in GNP has not kept pace with population growth: as a result, per capita income in many developing countries has stagnated or fallen. Mortality rates in developing countries are still higher than those in industrial countries, but the gap is closing appreciably. Ultimately, this gap is not due to differences in medical or hygienic know-how but to economic bottlenecks (e.g. malnutrition, access to health services)

Liberal development, 1925–46

2017 ◽  
Author(s):  
John Toye
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Exchange Rate ◽  
Developing Country ◽  
Trade Protection ◽  
Communist Country ◽  
Economic Policies ◽  
Government Finance ◽  
Soviet Government ◽  
Experimental Economic

Keynes’s writings are often disregarded in the context of economic development, overlooking that Russia was a developing country in his lifetime. He wrote about the experimental economic techniques that the Soviet government employed. He visited Russia three times and wrote A Short View of Russia in which he explained and criticized Bolsheviks’ policy of export and import monopolies, an overvalued exchange rate, inflationary government finance, and the subsidization of industry. These were policies that many developing countries adopted after decolonization. Keynes’s conclusion was that they were inefficient and that ‘bourgeois economics was valid in a communist country’. Did Keynes change his mind in the 1930s? If anything, he grew more harshly critical of Soviet economic policies and carefully distinguished them from his own endorsement of moderate trade protection and government supplementary investment in times of depression.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

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