Advanced Search
MyIDEAS: Login to save this paper or follow this series

Growth and North-South Wage Gap

Contents:

Author Info

  • Liansheng Wang

    (University of Copenhagen, Institute of Economics)

Registered author(s):

    Abstract

    We study the sources of long-run growth and wage gap in a North-South (N-S) model with trade and foreign direct investment (FDI). Although R&D is the engine of global growth, increased share of R&D spending need not be accompanied by higher growth rate, and vice versa. Although, investment is induced by productivity growth, investment-output ratio need not rise monotonically with productivity growth. Lower investment-output ratio may accompany higher productivity growth, so higher growth rate need not entail lower share of consumption. We argue that existing models may exaggerate or under-estimate the role of R&D in growth. We also show that higher growth rate is normally accompanied by greater N–S wage gap in the long run. The effect of country size on wage gap is generally ambiguous, depending on the direction and magnitude of scale effects in R&D. Both FDI and S-N migration may increase global growth rate and N-S wage gap.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.econ.ku.dk/english/research/publications/wp/2000/0012.pdf/
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 00-12.

    as in new window
    Length: 28 pages
    Date of creation: Oct 2000
    Date of revision:
    Handle: RePEc:kud:kuiedp:0012

    Contact details of provider:
    Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
    Phone: (+45) 35 32 30 10
    Fax: +45 35 32 30 00
    Email:
    Web page: http://www.econ.ku.dk
    More information through EDIRC

    Related research

    Keywords: Endogenous Growth; North-South Wage Gap; R&D; Investment;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:kud:kuiedp:0012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.