Endogènisation des comportements migratoires des travailleurs qualifies induits par l’implantation des multinationales au Sud
AbstractLet us follow Romer’s framework (1990) for the intermediate goods sector. We assume the following. A North operated multinational firm is implanted in the North and the South. The North designs and makes the higher quality products. In the South, its manufacturing divisions produce intermediate and final goods of lower quality competing against the South locals. The multinational is constrained by the South government to transfer a certain amount of knowhow Hns and technology xns. It also benefits from the large pool of cheaper labor, and leads the efforts of innovation in the South. Final goods and intermediate goods are tradable, although some restrictions may apply on the part which is technologically advanced. The countries, independently of the multinational and of its South competitor, still produce non tradable goods, to which quality rankings do not apply, because they depend on local taste. The workers in the North and the South thereby benefit from both types of goods, tradable and non tradable. Competitors in the South reverse-engineer the goods produced in the South and compete with the North on the final goods market which may be tariff protected, selling back to the North operated multinational firm, or on the intermediate goods market in the South. To the difference of Currie et al (1999, 1996), but similarly to our first model’s assumption that the rate of absorption of the North’s human capital is endogenous to the importance of foreign capital investment, the present model inspired by Ahmid Datta’s model illustrates the mechanism of endogenous absorption through reverse-engineering of foreign designed goods. Conclusions of the original Ahmid Datta’s 2005 model were that a threshold of accumulated human capital knowledge must exists, before the local human capital and imported technology become substitutes from being complements. We clearly reach to the same conclusion here. This finding is consistent with the role given to human capital by Keller 1996. We here strive to demonstrate our first model hypothesis by analyzing: The effect of the multinational’s decision of foreign investment on the threshold (imitation to innovation state). 6 The effect of international migration of qualified workers on the threshold. The effect of Northern consumer’s bias for local made products, on the threshold. How does the constraint imposed on the multinational to transfer technology and know-how, translate on its profits, on its market share in the South?
Download InfoIf 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 4602.
Date of creation: 25 Aug 2007
Date of revision:
North; South; Grossman; Helpman; Labor; Migration; Bias; Innovation;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-02 (All new papers)
- NEP-INO-2007-09-02 (Innovation)
- NEP-MIG-2007-09-02 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Weinstein & Christian Broda, 2004.
"Globalization and the Gains from Variety,"
Econometric Society 2004 North American Summer Meetings
508, Econometric Society.
- Christian Broda & David E. Weinstein, 2004. "Globalization and the Gains from Variety," NBER Working Papers 10314, National Bureau of Economic Research, Inc.
- David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," 2004 Meeting Papers 530, Society for Economic Dynamics.
- Christian Broda & David Weinstein, 2004. "Globalization and the gains from variety," Staff Reports 180, Federal Reserve Bank of New York.
- David E. Weinstein & Christian Broda, 2004. "Globalization And The Gains From Variety," Econometric Society 2004 Latin American Meetings 327, Econometric Society.
- David Currie & Paul Levine & Joeseph Pearlman & Michael Chui, 1996.
"Phases of Imitation and Innovation in a North-South Endogenous Growth Model,"
School of Economics Discussion Papers
9602, School of Economics, University of Surrey.
- Currie, David, et al, 1999. "Phases of Imitation and Innovation in a North-South Endogenous Growth Model," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 60-88, January.
- Chui, Michael & Currie, David & Levine, Paul L & Pearlman, Joseph, 1996. "Phases of Imitation and Innovation in a North-South Endogenous Growth Model," CEPR Discussion Papers 1489, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
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.