Preprint

Critical Review of the Paper 'A Simple Model of Firm Heterogeneity, International Trade and Wages', Stephen Ross Yeaple (2005), Journal of International Economics, vol. 65, pp. 1-20

This report critically analyses the paper "A Simple Model of Firm Heterogeneity, International Trade and Wages' authored by, Stephen Ross Yeaple. Yeaple (2005) introduces a static model in which ex-ante homogeneous firms are differentiated based on heterogeneity in technology adoption and skill selection. The process of decision making is based on comparative study of revenues and costs associated with acquisition of technology and labor. By segmenting technology into high- and low-tech, and labor into high- and low-skilled, Yeaple suggests that high-tech firms hire skilled labor at greater wages and yield the access to international market, while on the other hand, the low-tech firms hire moderate skilled labor, pay lower wages and supply to the domestic market only. Furthermore, he shows that under an open economy, a reduction in costs of international trade leads to an increase in share of high-tech (exporting) firms and induces some low-tech firms to switch to the high-tech industry.

Sprache
Englisch

Klassifikation
Wirtschaft
Trade and Labor Market Interactions
Labor Force and Employment, Size, and Structure
Thema
Firm Heterogeneity
International Trade
Firm size
International trade policy

Ereignis
Geistige Schöpfung
(wer)
Atif, Syed Muhammad
Ereignis
Veröffentlichung
(wer)
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
(wo)
Kiel und Hamburg
(wann)
2012-10-26T12:47:43Z

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Preprint

Beteiligte

  • Atif, Syed Muhammad
  • ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft

Entstanden

  • 2012-10-26T12:47:43Z

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