Capital, technology, and specialization in the neoclassical model

Shikher, Serge

doi:10.1016/j.jinteco.2010.11.006

Cited by 47 publications

(34 citation statements)

References 24 publications

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“…Both will of course affect trade volumes, but we would like to extract technology T j n from these estimates. In order to do that, we follow the approach of Shikher (2012). In particular, for each country n, the share of total spending going to home-produced goods is given by…”

Section: A1 Tradeable Sector Relative Technologymentioning

confidence: 99%

“…Methodologically, our work builds on recent quantitative welfare assessments of trade integration in multi-sector Ricardian models (Shikher 2011, Caliendo and Parro 2010, Costinot, Donaldson and Komunjer 2012. A number of studies analyze the long-run aggregate impact of some of the emerging giant countries on welfare around the world (Coleman 2007, Hsieh and Ossa 2011, Levchenko and Zhang 2012, di Giovanni, Levchenko and Zhang 2013.…”

Section: Introductionmentioning

confidence: 99%

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The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

Levchenko¹,

Zhang²

2013

IMF Econ Rev

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper investigates both aggregate and distributional impacts of the trade integration of China, India, and Central and Eastern Europe in a quantitative multi-country multi-sector model, comparing outcomes with and without factor market frictions. Under perfect withincountry factor mobility, the gains to the rest of the world from trade integration of emerging giants are 0.37%, ranging from −0.37% for Honduras to 2.28% for Sri Lanka. Reallocation of factors across sectors contributes relatively little to the aggregate gains, but has large distributional effects. The aggregate gains to the rest of the world are only 0.065 percentage points lower when neither capital nor labor can move across sectors within a country. On the other hand, the distributional effects of the emerging giants' trade integration are an order of magnitude larger, with changes in real factor returns ranging from −5% to 5% across sectors in most countries. The workers and capital owners in emerging giants' comparative advantage sectors such as Textiles and Wearing Apparel experience greatest losses, while factor owners in Printing and Medical, Precision and Optical Instruments normally gain the most. Terms of use: Documents inJEL Classifications: F11, F15, F16

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Section: A1 Tradeable Sector Relative Technologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

Levchenko¹,

Zhang²

2013

IMF Econ Rev

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“…; i; j such that i 6 = j. 31 Assume that country 1 has a relative strong demand for goods in industry ! and a comparative advantage in innovation in industry !…”

Section: Trade and Comparative Advantage In Productionmentioning

confidence: 99%

“…Armed with estimates of the preference parameters ! i , the R&D parameter ; and the dispersion parameter , the ex-post evaluation of (31) Notice that relative to the model with no innovation, the formula for c W it must be augmented by the …rst term in (31) to capture the endogenous adjustments in technology. 33 (29) for some value of the parameter ; and (iii) I compute the change in real income per capita according to (31).…”

Section: Real Income In the Balanced Growth Pathmentioning

confidence: 99%

“…i , the R&D parameter ; and the dispersion parameter , the ex-post evaluation of (31) Notice that relative to the model with no innovation, the formula for c W it must be augmented by the …rst term in (31) to capture the endogenous adjustments in technology. 33 (29) for some value of the parameter ; and (iii) I compute the change in real income per capita according to (31). In this way, the di¤erences in the predicted changes in real income per capita between the model with no innovation and the model with directed research are those that emerge from setting = 0 or > 0 in the system in changes (29).…”

Section: Real Income In the Balanced Growth Pathmentioning

confidence: 99%

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Comparative Advantage in Innovation and Production

Somale

2017

Int. finance discuss. pap.

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This paper develops a multi-country, general equilibrium, semi endogenous growth model of innovation and trade in which specialization in innovation and production are jointly determined. The distinctive element of the model is the ability of the agents to direct their research e¤orts to speci…c goods, in a context of heterogeneous innovation capabilities across countries and contemporaneous decreasing returns to R&D. The model features a two-way relationship between trade and technology absent in standard quantitative Ricardian trade models. I calibrate the model using a sample of 29 countries and 18 manufacturing industries and quantify the importance of endogenous adjustments in technology. I …nd that endogenous adjustments in technology due to directed research can account for up to 52.8% of the observed variance in comparative advantage in production. In addition, the model suggests that standard Ricardian models overestimate the reductions in real income from increases in trade costs and underestimate the increment in real income due to trade liberalizations.

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Ricardian productivity differences and the gains from trade

Levchenko

Zhang

2014

European Economic Review

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Capital, technology, and specialization in the neoclassical model

Cited by 47 publications

References 24 publications

The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

Comparative Advantage in Innovation and Production

Ricardian productivity differences and the gains from trade

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