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Economic Development, Trade and Wages

  • Ronald W. Jones

    (University of Rochester)

  • Sugata Marjit

    (Centre for Studies in Social Sciences, Calcutta)

We present models that allow the use of unskilled and skilled labor as well as capital and land. Thus agriculture, important in developing countries, can be included as well as two types of labor and a single (or two) type(s) of physical capital. The models are related to the simple 3 � 2 specific factors structure by means of what is called the "linear neighborhood structure", wherein no activity uses more than two factors, and the two types of labor work in separated sectors, using in common a type of physical capital. We discuss how wage rate changes are related when endowments change, when agriculture becomes traded and prices rise, and when unskilled labor becomes educated and joins the ranks of skilled workers. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd 2003

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Article provided by Verein für Socialpolitik in its journal German Economic Review.

Volume (Year): 4 (2003)
Issue (Month): 1 (February)
Pages: 1-17

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Handle: RePEc:bla:germec:v:4:y:2003:i:1:p:1-17
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  1. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-59, May-June.
  2. Jones, Ronald W & Kierzkowski, Henryk, 1986. "Neighborhood Production Structures, with an Application to the Theory of International Trade," Oxford Economic Papers, Oxford University Press, vol. 38(1), pages 59-76, March.
  3. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-78, December.
  4. Jones, Ronald W, 1989. "Co-movements in Relative Commodity Prices and International Capital Flows: A Simple Model," Economic Inquiry, Western Economic Association International, vol. 27(1), pages 131-41, January.
  5. Jones, Ronald W & Dei, Fumio, 1983. "International Trade and Foreign Investment: A Simple Model," Economic Inquiry, Western Economic Association International, vol. 21(4), pages 449-64, October.
  6. Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, June.
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