Trade, technology and labour markets in the world economy, 1970-90: A computable general equilibrium analysis

Whether the plight of OECD unskilled labour is due to trade or technology is examined with a general equilibrium Heckscher-Ohlin calibrated model of North and South. Technology transfer from North to South via direct foreign investment in unskilled-labour-intensive manufacturing industries is identi...

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Bibliographic Details
Published in:The Journal of development studies 1997-12, Vol.34 (2), p.1-34
Main Authors: Minford, Patrick, Riley, Jonathan, Nowell, Eric
Format: Article
Language:English
Subjects:
1970-1990
Debates
Economic models
Economic shock
Emerging markets
Equilibrium
Factors
Foreign direct investment
General economic equilibrium
General equilibrium model
Global economy
Hypotheses
International trade
Labor force
Labor market
Labour market
Manufacturing
North-South relations
Protectionism
Simulation
Skilled workers
Specialization
Technology
Technology transfer
Trade
Trends
Unskilled workers
Wages & salaries
World economy
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Summary:Whether the plight of OECD unskilled labour is due to trade or technology is examined with a general equilibrium Heckscher-Ohlin calibrated model of North and South. Technology transfer from North to South via direct foreign investment in unskilled-labour-intensive manufacturing industries is identified as the trade shock. Simulations are carried out for this and other relevant shocks, and compared with the facts of the 1970-90 period. Weights on the shocks are selected by least squares. It is found that the roles of trade and technology in the plight of Northern unskilled labour are roughly equal.
ISSN:0022-0388
1743-9140
DOI:10.1080/00220389708422510