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| Coxhead, Ian A.; Li, Muqun. |
| In an integrated global economy, specialisation in trade is an increasingly prominent strategy. A labour-abundant, resource-rich economy like Indonesia faces stiff competition for labour-intensive manufactures; meanwhile, rapid growth in demand for resources from China and India exposes it to the ‘curse’ of resource wealth. This diminishes prospects for more diversified growth based on renewable resources like human capital. Using an international panel data set we explore the influence of resource wealth, foreign direct investment, and human capital on the share of skill-intensive products in total exports. FDI and human capital increase this share; resource wealth diminishes it. We use the results to compare Indonesia with Thailand and Malaysia.... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International Relations/Trade; Labor and Human Capital. |
| Ano: 2008 |
URL: http://purl.umn.edu/92201 |
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| Li, Muqun; Coxhead, Ian A.. |
| Could globalization—specifically, increased international trade and openness to foreign investment—increase inequality in developing countries? Empirical studies in many such economies show that expanding trade and FDI are associated with higher inequality in wages and regional incomes. However, there is no agreement regarding the cause of such increases. We present a theoretical model showing how interactions between factor mobility restrictions and different rates of technical progress (due to trade and FDI) in a regionally heterogeneous economy can explain the evolution of inequality. As favored regions benefit more from trade, their growing demand for skills drains skilled workers from disadvantaged areas, and average incomes in favored regions grow... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International Development. |
| Ano: 2009 |
URL: http://purl.umn.edu/92236 |
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