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Production, Trade, and Migration with Differentiated, Skilled Workers

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  • James R. Markusen

Abstract

A model is developed in which the output of one traded sector (e.g., high tech) is produced using consultan ts who supply differentiated skilled services. An external economy is shown to exist, which in turn implies (1) the suboptimal supply of s killed specialists, (2) multiple equilibria, and (3) disadvantages fo r small and/or late developing economies. Although the results indica te a positive role for subsidies, the model emphasizes the need to su bsidize the use, not training, of skilled specialists. The latter pol icy subsidizes foreigners through emigration.

Suggested Citation

  • James R. Markusen, 1988. "Production, Trade, and Migration with Differentiated, Skilled Workers," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 492-506, August.
  • Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:492-506
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    Citations

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    Cited by:

    1. Joseph F. Francois & Lutger Schuknecht, 1999. "Trade in Financial Services: Procompetitive Effects and Growth Performance," Tinbergen Institute Discussion Papers 99-028/2, Tinbergen Institute.
    2. Joseph F. Francois & Douglas Nelson, 2002. "A Geometry Of Specialisation," Economic Journal, Royal Economic Society, vol. 112(481), pages 649-678, July.
    3. Joseph F. Francois, 2004. "Assessing the Impact of Trade Policy on Labour Markets and Production," Economie Internationale, CEPII research center, issue 99, pages 27-47.
    4. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
    5. Frank Barry, 2005. "Third-level education, foreign direct investment and economic boom in Ireland," Working Papers 200509, School of Economics, University College Dublin.
    6. Straubhaar, Thomas, 2000. "Why do we need a general agreement on movements of people (GAMP)?," HWWA Discussion Papers 94, Hamburg Institute of International Economics (HWWA).
    7. Francois, Joseph & Wooton, Ian, 2001. "Market structure, trade liberalization and the GATS," European Journal of Political Economy, Elsevier, vol. 17(2), pages 389-402, June.
    8. Eswaran, Mukesh & Kotwal, Ashok, 2002. "The role of the service sector in the process of industrialization," Journal of Development Economics, Elsevier, vol. 68(2), pages 401-420, August.
    9. Walz, Uwe, 1993. "On the growth (rate) effects of migration," Tübinger Diskussionsbeiträge 24, University of Tübingen, School of Business and Economics.
    10. Ziesemer, Thomas, 1990. "Optimal Subsidization and Structural Change under Monopolistic Competition with Technical Progress a la Ethier," MPRA Paper 64500, University Library of Munich, Germany.
    11. Helmenstein, Christian & Yegorov, Yury, 2000. "The dynamics of migration in the presence of chains," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 307-323, February.
    12. Barry, Frank, 2005. "Future Irish Growth: Opportunities, Catalysts, Constraints," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2005(4-Winter), pages 1-25.
    13. James R. Markusen, 1990. "First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development," NBER Working Papers 3284, National Bureau of Economic Research, Inc.
    14. Straubhaar Thomas, 1999. "Brain Gain: Wohin gehen die Wissensträger in Zukunft?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 50(1), pages 233-258, January.

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