A New Impetus for Endogenous Growth: R&D Offshoring via Virtual Labor Mobility

Noritsugu Nakanishi and Ngo Long

No HIAS-E-95, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: We develop a simple North-South model of quality ladders to show that the virtual mobility of labor across time zones, facilitated by the advance in communication technology, can raise the endogenous growth rate of the world economy. The unique balanced growth rate is increasing in the endowments of skilled labor in both countries and decreasing in the rate of impatience. Moreover, we find that partial R&D offshoring to the South has initially a negative effect on the level of skilled wages in the North, but this is compensated for by its positive effect on the growth rate in both North and South.

Keywords: R&D offshoring; Virtual labor mobility; Time zone difference; Endogenous growth; North-South trade (search for similar items in EconPapers)
JEL-codes: F43 O41 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2020-02
New Economics Papers: this item is included in nep-gro, nep-ict and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: A new impetus for endogenous growth: R&D offshoring via virtual labor mobility (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-95

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