The Skill Premium and Economic Growth with Costly Investment, Complementarities and International Technological-Knowledge Diffusion

• Type: Article in International Scientific Journal
• Date: 2014

Authors

Óscar Afonso (Author) FEP; Pedro Neves (Author) FEP; Maria Thompson (Author) Other

Journal

Title: Journal of International Trade and Economic Development

ISSN: 0963-8199

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 2 Citations

ISI Web of Science

Scopus - 2 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-009-PZC

DOI: 10.1080/09638199.2010.544395

Abstract (EN): We analyse the skill premium and the growth rate in an innovator-imitator general equilibrium growth model assuming (i) internal costly investment in both physical capital and R&D, (ii) complementarities between intermediate goods in production and (iii) technological-knowledge diffusion. We find that in the imitator country these three elements influence the economic growth rate and the skill premium. In the innovator country, while the growth rate is affected by costly investment and complementarities, the skill premium is not affected by any of our assumptions. It depends solely on the productive advantage of high-skilled over low-skilled labour, which suggests that the sustained increase in the skill premium observed in several developed countries over the last three decades may have been due to increases in such productive advantage.

Language: English

Type (Professor's evaluation): Scientific