Arabinda Ghosh (Department of Economics, Raghunathpur College, Raghunathpur District, Purulia, West Bengal, India) Kausik Gupta (Department of Economics, University of Burdwan, Burdwan, West Bengal, India)
Abstract
This paper analyses a North-South model in which the Southern labour market is decomposed into skilled labour and unskilled labour. The skilled labour is an intermediate input produced with capital and unskilled labour. The South is a net receiver of foreign capital from the North. The terms of trade is endogenously determined and it plays an important role in determining the stock of skilled labour and the inflow of foreign capital in the South. Our study shows that a policy of trade liberalisation may deteriorate the terms of trade but it may increase the inflow of foreign capital and the supply of skilled labour. Moreover, we have also seen that a rise in the domestic capital formation may improve the terms of trade for the South.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies