IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Modelling International Economic Integration: Patterns of Catching-up and Foreign Direct Investment

  • Landesmann Michael A.
  • Stehrer Robert

In this paper we develop a model of international specialisation and catching-up which combines Ricardian and Schumpeterian features. Catching-up patterns are endogenised by FDI flows which react to industry specific unit rents and thus enforce convergence dynamics. This generalises the Gerschenkronian idea of the "advantage of backwardness" to be applied at a disaggregated level and explains the empirically observed pattern that some countries converge faster in the high tech sectors where the initial gap is larger. Depending on the productivity, wage and profits dynamic there may be "comparative advantage switchovers" in which a catching-up economy turns its competitive advantage towards medium-to hightech areas. We investigate in which way labour market dynamics, productivity catching-up and investment patterns all combine to determine the evolution of the international division of labour. Further we point also to the impact on labour demand and wage structures (between skilled and unskilled workers) both in the lead and the catching-up economies.

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.rivisteweb.it/download/article/10.1428/23531
Download Restriction: no

File URL: http://www.rivisteweb.it/doi/10.1428/23531
Download Restriction: no

Article provided by Società editrice il Mulino in its journal Economia politica.

Volume (Year): (2006)
Issue (Month): 3 ()
Pages: 335-362

as
in new window

Handle: RePEc:mul:jb33yl:doi:10.1428/23531:y:2006:i:3:p:335-362
Contact details of provider:

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

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

When requesting a correction, please mention this item's handle: RePEc:mul:jb33yl:doi:10.1428/23531:y:2006:i:3:p:335-362. 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: ()

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.