The North-South divide: sources of divergence, policies for convergence

Lucrezia Fanti, Marcelo Pereira and Maria Enrica Virgillito

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: Building upon the labour-augmented K+S modelling framework (Dosi et al., 2010, 2017, 2020), we address the analysis of the North-South divide by means of an agent-based model (ABM) endogenously reproducing divergence between two artificial macro-regions characterized by identical initial conditions in terms of productive and innovation structures, but different labour market organizations. Given the ex-ante initial conditions, we identify the role played by different functioning of the labour markets on the possible divergence across the two regions. We do find that divergences in labour market reverberate into asymmetric productive performance due to negative reinforcing feedback loop dynamics. We then confront alternative policy schemes by showing that investment policies directed at increasing machine renewal and higher substitutionary investment are the most effective in fostering the convergence process.

Keywords: Agent-Based Models; Technology Gap; Labour Market. (search for similar items in EconPapers)
Date: 2022-05-17
New Economics Papers: this item is included in nep-cmp, nep-hme, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.lem.sssup.it/WPLem/files/2022-16.pdf (application/pdf)

Related works:
Journal Article: The North-South divide: Sources of divergence, policies for convergence (2023)
Working Paper: The North-South divide: sources of divergence, policies for convergence (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2022/16

Access Statistics for this paper

More papers in LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).