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Production, Trade, and Migration with Differentiated, Skilled Workers

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  • James R. Markusen

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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Bibliographic 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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Cited by:
  1. 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.
  2. Straubhaar, Thomas, 2000. "Why do we need a general agreement on movements of people (GAMP)?," HWWA Discussion Papers 94, Hamburg Institute of International Economics (HWWA).
  3. Joseph F. Francois & Lutger Schuknecht, 1999. "Trade in Financial Services: Procompetitive Effects and Growth Performance," Tinbergen Institute Discussion Papers 99-028/2, Tinbergen Institute.
  4. repec:dgr:uvatin:2098006 is not listed on IDEAS
  5. Joseph F. Francois & Douglas Nelson, 1998. "A Geometry of Specialization," Tinbergen Institute Discussion Papers 98-006/2, Tinbergen Institute.
  6. Helmenstein, Christian & Yegorov, Yury, 2000. "The dynamics of migration in the presence of chains," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 307-323, February.
  7. 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.
  8. Joseph Francois, 2004. "Assessing the Impact of Trade Policy on Labor Markets and Production," Tinbergen Institute Discussion Papers 04-058/2, Tinbergen Institute.
  9. Francois, Joseph & Wooton, Ian, 2001. "Market Structure, Trade Liberalization, and the GATS," CEPR Discussion Papers 2669, C.E.P.R. Discussion Papers.
  10. 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.
  11. Joseph Francois & Ian Wooton, 2000. "Market Structure, Trade Liberalization and the GATS," Tinbergen Institute Discussion Papers 00-059/2, Tinbergen Institute.
  12. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
  13. Joseph F. Francois & Douglas Nelson, 1998. "A Geometry of Specialization," Tinbergen Institute Discussion Papers 98-006/2, Tinbergen Institute.
  14. Eswaran, Mukesh & Kotwal, Ashok, 2002. "The role of the service sector in the process of industrialization," Journal of Development Economics, Elsevier, vol. 68(2), pages 401-420, August.
  15. Frank Barry, 2005. "Third-Level Education, Foreign Direct Investment and Economic Boom in Ireland," Working Papers 200509, School Of Economics, University College Dublin.

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