The Two Sector Model of Learning-By Doing and Productivity Differences
Tuna DinÃ§ ()
Additional contact information
Tuna DinÃ§: Department of Economics, Yildiz Technical University, Turkey
Panoeconomicus, 2012, vol. 59, issue 5, 583-598
This paper proposes that even when all countries have access to common technology frontier and can use the technologies which are fully appropriate to their needs, there will still be productivity differences across countries depending on their relative skill endowments. To illustrate this view, we have constructed a two sector model of productivity differences in which the level of technology is determined endogenously depending on the aggregate capital externalities. The relative supply of skilled and unskilled labor determines the direction of technical choices of the countries and differences in these relative factor supplies lead to cross-country income differences combined with the fact that capital is more productive in the advance of the skilled labor complement technologies than in the unskilled labor complement technologies.
Keywords: Productivity differences; Technological change; Skilled/unskilled labor (search for similar items in EconPapers)
JEL-codes: O33 O40 J24 (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)
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:voj:journl:v:59:y:2012:i:5:p:583-598
Access Statistics for this article
Panoeconomicus is currently edited by Kosta Josifidis
More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Series data maintained by Ivana Horvat (). This e-mail address is bad, please contact .