Artikel
International Trade and Directed Technical Change in Developing Countries
This paper examines the relation between the skill premium and international trade given differences in the relative supply of skills across countries while allowing the South (developing countries) to develop its appropriate technology. Typical assumptions put forward in the literature state that either technology is exogenously given, or technical change is allowed only in the North (developed countries). I present a model of international trade with endogenous growth by allowing the South to direct its technology. The results show that more R&D is directed towards skill-augmenting technology in the North than in the South, in sectors with the same skill-intensity. Technical change induced by lowering trade costs can increase the skill premium in both the North and the South. This result can explain the empirical observation that the skill premium has increased within many developing countries after they experienced trade liberalization. Finally, the model predicts larger gains from trade compared with the model where technical change is either not allowed, or allowed only in the North.
- Language
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Englisch
- Bibliographic citation
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Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 41 ; Year: 2019 ; Issue: 3 ; Pages: 77-96 ; Sejong: Korea Development Institute (KDI)
- Classification
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Wirtschaft
Trade and Labor Market Interactions
Economic Growth of Open Economies
Technological Change: Choices and Consequences; Diffusion Processes
One, Two, and Multisector Growth Models
- Subject
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Directed Technical Change
Globalization
Economic Growth
Skill Premium
- Event
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Geistige Schöpfung
- (who)
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Kim, Minho
- Event
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Veröffentlichung
- (who)
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Korea Development Institute (KDI)
- (where)
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Sejong
- (when)
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2019
- DOI
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doi:10.23895/kdijep.2019.41.3.77
- Handle
- Last update
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08.03.2024, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Kim, Minho
- Korea Development Institute (KDI)
Time of origin
- 2019
Other Objects (12)
Technical cooperation among developing countries : (TCDC)
Trade Fair for developing countries
Agricultural trade with developing countries
Foreign trade favours developing countries
Trade chances for developing countries
Trade facilitation in developing countries
Developing Countries in World Trade
Trade relations EEC—Developing countries
The developing countries' deteriorated trade balance
Trade in services and developing countries
Agriculture trade liberalization : implications for developing countries
EC agricultural trade policies towards developing countries
Technical cooperation among developing countries : (TCDC)
Trade Fair for developing countries
Agricultural trade with developing countries
Foreign trade favours developing countries
Trade chances for developing countries
Trade facilitation in developing countries
Developing Countries in World Trade
Trade relations EEC—Developing countries
The developing countries' deteriorated trade balance
Trade in services and developing countries
Agriculture trade liberalization : implications for developing countries
EC agricultural trade policies towards developing countries
Technical cooperation among developing countries : (TCDC)
Trade Fair for developing countries
Agricultural trade with developing countries
Foreign trade favours developing countries
Trade chances for developing countries
Trade facilitation in developing countries
Developing Countries in World Trade
Trade relations EEC—Developing countries
The developing countries' deteriorated trade balance
Trade in services and developing countries
Agriculture trade liberalization : implications for developing countries