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Technical change and surplus labor in the global economy

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  • Takahiko Hashimoto

    (Ritsumeikan University)

Abstract

Based on the studies of Okishio and Roemer, this study discusses the relationship between surplus value and technological change that reduces costs and labor value by industry. Previous studies were limited in that they constructed a one-country model using a single wage rate and did not consider imported intermediate goods. Therefore, we extend the framework of the previous studies to a case in which imported intermediate goods exist and wage rates differ across countries, using a two-country, two-sector model and a multicountry-multisector model in this study. The analysis reveals that when surplus labor is negative in a country that imports intermediate goods, technological change occurs that reduces costs but uses more direct and indirect labor in the country’s industries. The type of technological change was found to be capital-using and labor-saving.

Suggested Citation

  • Takahiko Hashimoto, 2025. "Technical change and surplus labor in the global economy," Evolutionary and Institutional Economics Review, Springer, vol. 22(1), pages 213-228, April.
    • Handle: RePEc:spr:eaiere:v:22:y:2025:i:1:d:10.1007_s40844-025-00302-9
    DOI: 10.1007/s40844-025-00302-9
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    References listed on IDEAS

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    1. Taiji Hagiwara, 2017. "Labor Value and Exploitation in the Global Economy," Research in Political Economy, in: Return of Marxian Macro-Dynamics in East Asia, volume 32, pages 15-37, Emerald Group Publishing Limited.
    2. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2016. "Import Competition and the Great US Employment Sag of the 2000s," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 141-198.
    3. Deepankar Basu & Oscar Orellana, 2023. "Technical change, constant rate of exploitation and falling rate of profit in linear production economies," Metroeconomica, Wiley Blackwell, vol. 74(3), pages 512-530, July.
    4. Peter Flaschel & Reiner Franke & Roberto Veneziani, 2013. "Labour productivity and the law of decreasing labour content," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(2), pages 379-402.
    5. Bowles, Samuel & Gintis, Herbert, 1977. "The Marxian Theory of Value and Heterogeneous Labour: A Critique and Reformulation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 1(2), pages 173-192, June.
    6. repec:eme:rpec11:s0161-723020170000032003 is not listed on IDEAS
    7. Ulrich Krause, 1981. "Heterogeneous Labour and the Fundamental Marxian Theorem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(1), pages 173-178.
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    Keywords

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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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