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Title: |
Learning, Experience and the Dynamics of
North-South Trade and Technology Transfer |
| Author: |
Benarroch,
Michael; Gaisford, James D. |
| Author
Affiliation: |
U Winnipeg; U
Calgary |
| Source: |
International Economic Journal, Summer 2002, v. 16, no. 2, pp. 65-83 |
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Publication Date: |
Summer 2002 |
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Abstract: |
This paper
examines the dynamics of learning and experience that underlie
technology transfer using a North-South trade model with a continuum of
goods. Since North is historically more experienced than South, it
initially produces the most advanced goods and pays higher wages.
Whenever there is a market-driven transfer of technology and production
over time, there will be some wage convergence as South gradually gains
experience. Nevertheless, wage inequality must persist in the steady
state. Product innovation typically increases steady-state wage
inequality because new goods are produced in North, and North ultimately
learns than South. |
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