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Industrial Specialization, Catching-up and Labour Market Dynamics

Author

Listed:
  • Michael Landesmann

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This paper presents a dynamic model as a heuristic tool to discuss issues of changing industrial specialization which arise in the context of catching-up processes of (technologically) less advanced economies and the impact which various scenarios of such catching-up processes might have on the labour market dynamics both in the advanced and the catching-up economies. In analysing the evolution of international specialization, we demonstrate the twin pressures exerted upon the industrial structures of 'northern' economies competition from 'type-A southern' economies which maintain a comparative competitive strength in labour-intensive and less skill-intensive branches, and competition from 'type-B catching-up' economies, whose catching-up increasingly focuses upon branches in which the initial productivity gaps and hence the scope for catching-up are the highest. The contrast between these two catching-up scenarios allows the explicit analysis of the implications of 'comparative advantage switchovers' between northern and southern (type-B) economies for labour market dynamics.

Suggested Citation

  • Michael Landesmann & Robert Stehrer, 1997. "Industrial Specialization, Catching-up and Labour Market Dynamics," wiiw Working Papers 7, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:wpaper:7
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    Citations

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    Cited by:

    1. Harada, Tsutomu, 2012. "Advantages of backwardness and forwardness with shifting comparative advantage," Research in Economics, Elsevier, vol. 66(1), pages 72-81.
    2. Peter Havlik & Michael Landesmann & Robert Stehrer & Waltraut Urban, 2003. "wiiw Structural Report 2003 on Central and Eastern Europe, Volume 1," wiiw Structural Report 1, The Vienna Institute for International Economic Studies, wiiw.
    3. Apoorva Ghosh & Pranabesh Ray, 2012. "A Contemporary Model for Industrial Relations," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(1), pages 17-30, February.
    4. Bart Los & Bart Verspagen, 2006. "The Evolution Of Productivity Gaps And Specialization Patterns," Metroeconomica, Wiley Blackwell, vol. 57(4), pages 464-493, November.
    5. Michael A. Landesmann, 2003. "Structural features of economic integration in an enlarged Europe: patterns of catching-up and industrial specialisation," European Economy - Economic Papers 2008 - 2015 181, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. Huaide Wen & Jun Dai, 2021. "Green Technological Progress and the Backwardness Advantage of Green Development: Taking the Sustainable Development Strategy of Central and Western China as an Example," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    7. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2021. "Asymmetries in Global Value Chain Integration, Technology and Employment Structures in Europe: Country and Sectoral Evidence," CESifo Working Paper Series 9438, CESifo.
    8. Brenke, Karl & Eickelpasch, Alexander & Sander, Birgit & Postlep, Rolf-Dieter & Schmidt, Klaus-Dieter & Gerling, Katja & Beer, Siegfried & Ragnitz, Joachim & Rothfels, Jacqueline, 1997. "Gesamtwirtschaftliche und unternehmerische Anpassungsfortschritte in Ostdeutschland: Sechzehnter Bericht," Kiel Discussion Papers 302/303, Kiel Institute for the World Economy (IfW Kiel).
    9. Robert Stehrer, 2002. "Dynamics of Trade Integration and Technological Convergence," Economic Systems Research, Taylor & Francis Journals, vol. 14(3), pages 219-244.
    10. Michael Landesmann & Robert Stehrer, 1999. "The European Unemployment Problem: A Structural Approach," wiiw Working Papers 10, The Vienna Institute for International Economic Studies, wiiw.
    11. Robert Stehrer & Julia Woerz, 2009. "Industrial Diversity, Trade Patterns, and Productivity Convergence," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 356-372, May.
    12. Tausch, Arno, 2009. "Ist die Globalisierung fit für das soziale Europa? [Is Globalization fit for Social Europe?]," MPRA Paper 14264, University Library of Munich, Germany.
    13. Andrea Szalavetz, 2002. "Some neglected effects of EU enlargements - rationalization and specialization," IWE Working Papers 129, Institute for World Economics - Centre for Economic and Regional Studies.
    14. Landesmann, Michael A. & Stehrer, Robert, 2001. "Convergence patterns and switchovers in comparative advantage," Structural Change and Economic Dynamics, Elsevier, vol. 12(4), pages 399-423, December.
    15. Landesmann, M.A. & Stehrer, R., 2006. "Goodwin's structural economic dynamics: Modelling Schumpeterian and Keynesian insights," Structural Change and Economic Dynamics, Elsevier, vol. 17(4), pages 501-524, December.
    16. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).
    17. Johann Burgstaller & Michael Landesmann & Robert Stehrer, 1999. "Convergence Patterns at the Industrial Level: the Dynamics of Comparative Advantage," wiiw Working Papers 11, The Vienna Institute for International Economic Studies, wiiw.
    18. Radosevic, Slavo, 1999. "Transformation of science and technology systems into systems of innovation in central and eastern Europe: the emerging patterns and determinants," Structural Change and Economic Dynamics, Elsevier, vol. 10(3-4), pages 277-320, December.
    19. Gerhard Palme, 1999. "Impacts of an EU Eastern Enlargement on Austria's Manufacturing. Eastern Opening Stimulates the Austrian Industry," Austrian Economic Quarterly, WIFO, vol. 4(1), pages 65-74, January.
    20. Jansen, Marion, 2000. "International trade and the position of European low-skilled labour," WTO Staff Working Papers ERAD-2000-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    21. Bramucci, Alessandro & Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario, 2021. "Offshoring, industry heterogeneity and employment11This paper is the research outcome of two projects: the ISIGrowth project on Innovation-fuelled, Sustainable, Inclusive Growth funded by the European," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 400-411.
    22. Anna Wziatek-Kubiak, 2006. "On Essence and Masurement of Changes in Competitiveness of the Accession Countries. Critical Review of Literature," CASE Network Studies and Analyses 0321, CASE-Center for Social and Economic Research.
    23. Pellegrin, Julie, 1999. "German production networks in Central, Eastern Europe: between dependency and globalisation," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-304, WZB Berlin Social Science Center.

    More about this item

    Keywords

    international competition; catching-up; labour market dynamics;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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