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An Elementary Proposition on Technical Progress and Non-traded Goods

  • Hamid Beladi

    (The University of Texas at San Antonio)

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    We explore the e ect of technical progress on the endogenously determined range of non-traded goods by using a Ricardian model with continuum of goods. By de ning technical progress on the basis of proportional changes in the relative productivity across sectors, we show that the range of non-traded goods decreases if technical progress is unbiased or if it is biased toward the goods that a country has more comparative advantage.

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    File URL: http://business.utsa.edu/wps/eco/0018ECO-414-2011.pdf
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    Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0018.

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    Length: 13 pages
    Date of creation:
    Date of revision:
    Handle: RePEc:tsa:wpaper:0018
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    1. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
    2. Sarbajit Chaudhuri, 2005. "Foreign Capital, Welfare And Urban Unemployment In The Presence Of Agricultural Dualism," International Trade 0510010, EconWPA.
    3. Sarbajit Chaudhuri & Shigemi Yabuuchi, 2005. "Economic Liberalization And Wage Inequality In The Presence Of Labour Market Imperfection," International Trade 0510008, EconWPA.
    4. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
    5. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
    6. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
    7. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
    8. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
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