To the top

Page Manager: Webmaster
Last update: 9/11/2012 3:13 PM

Tell a friend about this page
Print version

Free Mobility of Capital … - University of Gothenburg, Sweden Till startsida
Sitemap
To content Read more about how we use cookies on gu.se

Free Mobility of Capital and Labor Force in a Two-Country Model: The Dynamic Game” for Growth

Journal article
Authors Elvio Accinelli
Laura Policardo
Edgar Sanchez Carrera
Osvaldo Salas
Published in The Journal of Dynamics and Games
Volume 6
Issue 3
Pages 179-194
ISSN 2164-6066
Publication year 2019
Published at School of Public Administration
Pages 179-194
Language en
Links dx.doi.org/10.3934/jdg.2019013
Subject categories Economics

Abstract

In this paper, we consider a two-country and two-sector economy, where firms can choose to be innovative or not innovative, and workers to be skilled or unskilled. Using a dynamic game, we argue that exploiting the comparative advantages a country has in producing goods that use the most abundant factor of production, free mobility of capital and labour is beneficial for economic growth. However, if a country has a comparative advantage in a sector that uses intensely unskilled labour (which is the case of several underdeveloped economies), a poverty trap may arise. For this reason we argue that national Governments must ensure the technological development to improve competitiveness and therefore a social optimal use of the comparative advantages.

Page Manager: Webmaster|Last update: 9/11/2012
Share:

The University of Gothenburg uses cookies to provide you with the best possible user experience. By continuing on this website, you approve of our use of cookies.  What are cookies?