Findlay-Grubert versus Rybczynski: Testing growth hypotheses in classic trade theories using Singapore's industries

Hiau Looi Kee ()

The Journal of International Trade & Economic Development, 2009, vol. 18, issue 4, 443-486

Abstract: In the classic literature of multi-sector small open economy, there are two, competing hypotheses on growth. Findlay and Grubert (1959) showed that productivity growth in one sector affects the factor intensity of all sectors. Rybczynski (1955) presents the long run growth effects of endowment accumulations. Focusing on the most open small economy, this paper tests the two hypotheses directly by estimating the relative contributions at the industry level for Singapore. Results suggest that productivity contributes more in the electronics industry, but domestic endowments matter more in other industries. This paper is also the first to present evidence on the Findlay-Grubert effect by showing that the productivity growth of the electronics industry pushes up the capital-labor ratios of all industries.

Keywords: trade and growth; productivity; factor endowments; Rybczynski effects; Findlay-Grubert effects; East Asian miracle (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09638190903217727 (text/html)
Access to full text is restricted to subscribers.

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:taf:jitecd:v:18:y:2009:i:4:p:443-486

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638190903217727

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().