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Income Distribution, Technical Change And The Dynamics Of International Economic Integration

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  • Michael A. Landesmann
  • Robert Stehrer

Abstract

This paper explores the features of a dynamic multisectoral model that focuses on the relationship between income distribution, growth and international specialization. The model is explored both for the steady-state properties and the transitory dynamics of integrated economies. Income inequality affects the patterns of growth and international specialization as the model uses non-linear Engel curves and hence different income groups are characterized by different expenditure patterns. At the same time income distribution is also reflected in the relative wage rates of skilled to unskilled workers, i.e. the skill premium, and hence the wage structure affects comparative costs of industries which have different skill intensities. The model is applied to a situation that analyses qualitatively different economic development strategies of catching-up economies (a 'Latin American' scenario and a 'East Asian' scenario). Copyright � 2007 The Authors; Journal compilation � 2007 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Metroeconomica.

Volume (Year): 58 (2007)
Issue (Month): 1 (02)
Pages: 45-73

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Handle: RePEc:bla:metroe:v:58:y:2007:i:1:p:45-73

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Cited by:
  1. Michael Landesmann & Robert Stehrer, 2006. "Goodwin's Structural Economic Dynamics: Modelling Schumpeterian and Keynesian Insights," wiiw Working Papers 41, The Vienna Institute for International Economic Studies, wiiw.
  2. Michael Landesmann & Robert Stehrer, 2009. "South-North Integration, Outsourcing and Skills," wiiw Research Reports 353, The Vienna Institute for International Economic Studies, wiiw.
  3. Robert Stehrer, 2005. "Employment, Education and Occupation Structures: A Framework for Forecasting," wiiw Research Reports 315, The Vienna Institute for International Economic Studies, wiiw.
  4. Iván Arribas & Francisco Pérez & Emili Tortosa-Ausina, 2014. "The dynamics of international trade integration: 1967–2004," Empirical Economics, Springer, vol. 46(1), pages 19-41, February.

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