Factor-Biased Technical Change and Specialization Patterns
Jürgen Meckl () and
Additional contact information
Jürgen Meckl: Justus Liebig University of Giessen
Central European Journal of Economic Modelling and Econometrics, 2018, vol. 10, issue 2, 75-100
We analyze the medium- and long-run effects caused by an inflow of capital into a labor-abundant country. For that purpose, we incorporate directed technical change into a Heckscher-Ohlin model with a continuum of goods. This provides a comprehensive theory explaining the dynamics of comparative advantage based on differences in effective factor endowments, i.e. factor endowments adjusted by differences in technological levels. Our model constitutes an appropriate framework for understanding, e.g., the empirically observed changes in industrial structures of Central and Eastern European countries. Furthermore, we provide a theoretical foundation for the empirical Prospective Comparative Advantage index with new insights into the futuredynamics of comparative advantage. Eventually, we show the importance of research spillovers and state dependence on the process of convergence.
Keywords: comparative advantage; technological progress; dynamic processes; innovation; factor-biased technical change (search for similar items in EconPapers)
JEL-codes: F21 F43 O33 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Factor-Biased Technical Change and Specialization Patterns (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:psc:journl:v:10:y:2018:i:2:p:75-100
Access Statistics for this article
More articles in Central European Journal of Economic Modelling and Econometrics from Central European Journal of Economic Modelling and Econometrics
Bibliographic data for series maintained by Damian Jelito ().