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Production, Trade, and Migration with Differentiated, Skilled Workers

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Author Info
James R. Markusen

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Abstract

A model is developed in which the output of one traded sector (e.g., high tech) is produced using consultan ts who supply differentiated skilled services. An external economy is shown to exist, which in turn implies (1) the suboptimal supply of s killed specialists, (2) multiple equilibria, and (3) disadvantages fo r small and/or late developing economies. Although the results indica te a positive role for subsidies, the model emphasizes the need to su bsidize the use, not training, of skilled specialists. The latter pol icy subsidizes foreigners through emigration.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 21 (1988)
Issue (Month): 3 (August)
Pages: 492-506
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Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:492-506

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  1. Straubhaar, Thomas, 2000. "Why Do We Need a General Agreement on Movements of People (GAMP)?," Discussion Paper Series 26332, Hamburg Institute of International Economics. [Downloadable!]
  2. Joseph Francois & Ian Wooton, 2000. "Market Structure, Trade Liberalization and the GATS," Tinbergen Institute Discussion Papers 00-059/2, Tinbergen Institute. [Downloadable!]
    Other versions:
  3. Francois, Joseph & Schuknecht, Ludger, 1999. "Trade in Financial Services: Procompetitive Effects and Growth Performance," CEPR Discussion Papers 2144, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Joseph F. Francois & Douglas Nelson, 2002. "A Geometry Of Specialisation," Economic Journal, Royal Economic Society, vol. 112(481), pages 649-678, July. [Downloadable!] (restricted)
    Other versions:
  5. Christian Helmenstein & Yury Yegorov, 1994. "The Dynamics of Migration in the Presence of Chains," Economics Working Papers 86, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  6. Barry, Frank, 2005. "Future Irish Growth: Opportunities, Catalysts, Constraints," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2005(4-Winter), pages 1-25. [Downloadable!]
  7. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economic and Financial Studies. [Downloadable!]
  8. Frank Barry, 2005. "Third-Level Education, Foreign Direct Investment and Economic Boom in Ireland," Working Papers 200509, School Of Economics, University College Dublin. [Downloadable!]
  9. James R. Markusen, 1990. "First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development," NBER Working Papers 3284, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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