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Globalization with labor market frictions and non-scale growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Wolf-Heimo Grieben () (Department of Economics, University of Konstanz)
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We analyze the interaction between globalization and labor market frictions in a dynamic general equilibrium North-South non-scale growth model with endogenous Northern innovation and endogenous Southern imitation. The employment, growth and relative-wage effects of globalization are shown to depend qualitatively on the degree of Northern labor market frictions. We demonstrate that Northern countries with particular severe labor market frictions benefit from globalization in terms of employment and growth. We also analyze whether stricter intellectual property rights protection in the South, rising R&D subsidies in the North or an increase in Northern labor market flexibility alleviate or aggravate globalization effects.
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Paper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number
06-09.
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Length: 39 pages
Date of creation: 24 Apr 2006Date of revision:
Handle: RePEc:knz:hetero:0609Contact details of provider: Postal: D-78457 Konstanz Phone: +49 7531 88 2314 Web page: http://www.uni-konstanz.de/forschergruppewiwi More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Gerald Eisenkopf).
Keywords: Globalization ; Quality-Ladder Model ; Non-Scale Growth ; Frictional Unemployment ; Firing Costs ; Other versions of this item:
Find related papers by JEL classification: O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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