International knowledge spillovers and wage inequality in developing countries

Ming cheng Wang; Chen ray Fang; Li hsuan Huang

doi:10.1016/j.econmod.2009.05.008

International knowledge spillovers and wage inequality in developing countries

Ming cheng Wang, Chen ray Fang, Li hsuan Huang

經濟學系

研究成果: 雜誌貢獻 › 期刊論文 › 同行評審

20 引文斯高帕斯（Scopus）

摘要

In this paper, international knowledge spillovers are incorporated in a horizontal innovation model, designed to explain the observed uncertain effects that openness of trade can have on wage inequality in small developing countries. Openness of trade can produce two different effects: an increase in the relative price of less-skilled labor-intensive products and a wider skill discrepancy due to knowledge spillovers from the more to less developed country. The former triggers a fall in the wage premium, while the latter widens the wage premium gap in a developing country. These two opposing forces explain the observed uncertain effects of openness to trade on wage inequality in developing countries.

原文	???core.languages.en_GB???
頁（從 - 到）	1208-1214
頁數	7
期刊	Economic Modelling
卷	26
發行號	6
DOIs	https://doi.org/10.1016/j.econmod.2009.05.008
出版狀態	已出版 - 11月 2009

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10.1016/j.econmod.2009.05.008

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note = "Funding Information: We are grateful for the helpful comments made by two anonymous referees and seminar participants at National Central University, Tamkang University, and National Taipei University. Financial support was provided by the National Science Council of Taiwan under grant NSC 92-2415-H-008-003 to M. Wang. ",

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AU - Fang, Chen ray

AU - Huang, Li hsuan

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N2 - In this paper, international knowledge spillovers are incorporated in a horizontal innovation model, designed to explain the observed uncertain effects that openness of trade can have on wage inequality in small developing countries. Openness of trade can produce two different effects: an increase in the relative price of less-skilled labor-intensive products and a wider skill discrepancy due to knowledge spillovers from the more to less developed country. The former triggers a fall in the wage premium, while the latter widens the wage premium gap in a developing country. These two opposing forces explain the observed uncertain effects of openness to trade on wage inequality in developing countries.

AB - In this paper, international knowledge spillovers are incorporated in a horizontal innovation model, designed to explain the observed uncertain effects that openness of trade can have on wage inequality in small developing countries. Openness of trade can produce two different effects: an increase in the relative price of less-skilled labor-intensive products and a wider skill discrepancy due to knowledge spillovers from the more to less developed country. The former triggers a fall in the wage premium, while the latter widens the wage premium gap in a developing country. These two opposing forces explain the observed uncertain effects of openness to trade on wage inequality in developing countries.

KW - Developing country

KW - Endogenous growth model

KW - International knowledge spillovers

KW - Wage inequality

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International knowledge spillovers and wage inequality in developing countries

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