 Dynamics of Trade Integration and Technological ConvergenceEconomic Systems Research, 2002, vol. 14, issue 3, 219-244 Abstract: The issue of the impact of trade on economic performance and labour markets has been intensively discussed in recent literature on trade liberalization and globalization, where the debate was mainly about identifying the relative impact of trade and technology. The bulk of the existing literature in this area employs, almost without exception, a static Heckscher-Ohlin framework that seems not to be a suitable tool for analysing the ongoing dynamics. This paper presents a dynamic multi-sectoral framework with heterogenous labour to explore the issue of trade liberalization and sectoral catching-up in productivity levels. The model is basically an input-output framework with Schumpeterian features; the latter are modelled as the impact of transitory rents that result from uneven productivity growth and technological catching-up upon the price and quantity systems of the trading economies. Relative productivity and wage rate dynamics across sectors determine the comparative costs and the dynamics of trade specialization. In the Appendix, the equilibrium solutions of the model are derived. Keywords: Trade Liberalization; Economic Integration; Labour Markets; Economic Dynamics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ecsysr:v:14:y:2002:i:3:p:219-244 Ordering information: This journal article can be ordered from DOI: 10.1080/0953531022000002486 Access Statistics for this article Economic Systems Research is currently edited by Bart Los and Manfred Lenzen More articles in Economic Systems Research from Taylor & Francis Journals |
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