IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/1165.html
   My bibliography  Save this paper

The Elixir of Growth: Trade, Non-Traded Goods and Development

Author

Listed:
  • Minford, Patrick
  • Nowell, Eric
  • Riley, Jonathan

Abstract

Development and convergence is explained as the transfer of technology embodied in machinery, to the manufacturing sector of those developing countries that institute the necessary property rights. The process is modelled within a Heckscher-Ohlin-Samuelson framework with capital mobility and endogenous supplies of immobile factors, skilled and unskilled labour and land. The model suggests a factor-price-based PPP method of measuring developing countries' GDP. Model simulations of the assumed technical transfer to developing countries imply falling wages and employment of unskilled labour in developed countries, combined with improvements in their terms of trade - shared gains from trade combined with a distributional bias.

Suggested Citation

  • Minford, Patrick & Nowell, Eric & Riley, Jonathan, 1995. "The Elixir of Growth: Trade, Non-Traded Goods and Development," CEPR Discussion Papers 1165, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1165
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1165
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olivier Bontout & Sébastien Jean, 1998. "Sensibilité des salaires relatifs aux chocs exogènes de commerce international et de progrès technique: une évaluation d'équilibre général," Working Papers 1998-09, CEPII research center.
    2. Minford Patrick, 1996. "Free Trade And Long Wages – Still In The General Interest," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 7(1), pages 1-8, March.
    3. Farahane, Matias Jaime & Heshmati, Almas, 2020. "Trade and Economic Growth: Theories and Evidence from the Southern African Development Community," IZA Discussion Papers 13679, Institute of Labor Economics (IZA).
    4. Gundlach, Erich & Nunnenkamp, Peter, 1997. "Labor markets in the global economy: How to prevent rising wage gaps and unemployment," Kiel Discussion Papers 305, Kiel Institute for the World Economy (IfW Kiel).
    5. Abel M. Mateus, 1996. "Panel Discussion: implications of growth theory for macro-policy: what have we learned?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 40(Jun), pages 286-297.

    More about this item

    Keywords

    Development; Technological Transfer; Unemployment; Unskilled Labour; Wage Dispersion;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:1165. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.