Evolution of locations, specialisation and factor returns with two distinct waves of globalisation

Thia, Jang Ping (2008) Evolution of locations, specialisation and factor returns with two distinct waves of globalisation. CEPDP (875). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853282822

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Abstract

This paper presents an economic geography model with two differentiated sectors that exhibit weaker inter and stronger intra-industry input-output linkages. Labour is also differentiated according to skills in a hierarchy of tasks they can perform. Globalisation occurs in two distinct phases, leading to the agglomeration of an industry (manufacturing) in the first wave, which is subsequently displaced by the other industry (services) when the second wave of globalisation takes place. Because of agglomeration effects, the increase in relative endowment of a factor may increase its relative wages, leading to more inequality. Within and between nations inequality can result.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2008 Jang Oing Thia
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F0 - General > F02 - International Economic Order F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
Date Deposited:	17 Jul 2008 10:12
Last Modified:	11 Dec 2024 18:51
URI:	http://eprints.lse.ac.uk/id/eprint/19567

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