Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.euroecorev.2006.01.004
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dc.titleTrade costs, international production shifting, and growth
dc.contributor.authorGao, T.
dc.date.accessioned2011-05-03T08:08:07Z
dc.date.available2011-05-03T08:08:07Z
dc.date.issued2007
dc.identifier.citationGao, T. (2007). Trade costs, international production shifting, and growth. European Economic Review 51 (2) : 317-335. ScholarBank@NUS Repository. https://doi.org/10.1016/j.euroecorev.2006.01.004
dc.identifier.issn00142921
dc.identifier.urihttp://scholarbank.nus.edu.sg/handle/10635/22287
dc.description.abstractIn this paper I present a North-South endogenous growth model in which the impact of globalization on production location and growth can be analyzed. In the model the skilled-labor abundant North is the only innovator in the world. Using the model, I illustrate a scenario that is particularly interesting. Globalization (a reduction in trade costs) leads to a relocation of production to the South in a differentiated-product sector. As a result, more resources are shifted to R&D in the North, and the growth rate in the world increases. The model has several empirically consistent implications, such as rising relative wages of skilled to unskilled labor under globalization in both the North and South. I also discuss the welfare impact of globalization in this model. © 2006 Elsevier B.V. All rights reserved.
dc.description.urihttp://libproxy1.nus.edu.sg/login?url=http://dx.doi.org/10.1016/j.euroecorev.2006.01.004
dc.sourceScopus
dc.subjectGrowth
dc.subjectInnovation
dc.subjectProduction location
dc.subjectTrade costs
dc.typeArticle
dc.contributor.departmentECONOMICS
dc.description.doi10.1016/j.euroecorev.2006.01.004
dc.description.sourcetitleEuropean Economic Review
dc.description.volume51
dc.description.issue2
dc.description.page317-335
dc.identifier.isiut000244412300004
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