nep-lam New Economics Papers
on Central and South America
Issue of 2005‒04‒09
two papers chosen by
Maximo Rossi
Universidad de la República

  1. Public Education and Capital Accumulation By Michele Boldrin
  2. Price-Channel Effects of North-South Trade on the Direction of Technological Knowledge and Wage Inequality By Óscar Afonso; Álvaro Aguiar

  1. By: Michele Boldrin
    Date: 2005–04–05
  2. By: Óscar Afonso (CEMPRE, Faculdade de Economia do Porto); Álvaro Aguiar (CEMPRE, Faculdade de Economia do Porto)
    Abstract: This paper develops a general equilibrium endogenous growth model that emphasizes the mechanisms, other than market size, through which trade-induced North-South technological knowledge diffusion influences the direction of technological progress and, thus, the path of intra and inter-country wage inequality. In contrast with the market-size effect, more common in previous literature on skill-biased technological change, the operation of the price channel, central to this paper, predicts an increasing high-skilled technological bias following openness, which is more in line with the recent trends observed in developed and developing countries.
    Keywords: North-South trade; Technological knowledge diffusion; Direction of technological progress; Wage inequality.
    JEL: F16 F43 O31 O33
    Date: 2005–03

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