International Trade and Human Capital Investment with Heterogeneous Firms and Workers: Modeling and Analysis

Jaewon Jung
Additional contact information
Jaewon Jung: School of Business and Economics, Dankook University, Yongin 16890, Korea

Mathematics, 2021, vol. 9, issue 10, 1-21

Abstract: Though the importance of organizational behavior and human decision processes within firms for the firm performance has largely been recognized in the business and management literature, much less attention has been devoted to studying such implications in the international trade context. This paper develops a general-equilibrium trade model in which heterogeneous workers make an investment decision in acquiring advanced managerial skills and choose their optimal effort level based on their comparative advantage. In doing so, we show how globalization-induced human capital accumulation within firms leads to sustainable economic growth. We also show that workers’ organizational belief and CEO’s managerial vision may be an important element for the human capital formation within firms and for the performance of firms in a global economy.

Keywords: international trade; human capital investment; heterogeneous firms and workers; globalization; skill acquisition; labor productivity; organizational change; sustainable economic development and growth (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2227-7390/9/10/1106/pdf (application/pdf)
https://www.mdpi.com/2227-7390/9/10/1106/ (text/html)

Related works:
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:gam:jmathe:v:9:y:2021:i:10:p:1106-:d:553930

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().