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Title:Economic integration, labor reallocation, and growth PDF Logo
Authors:Hetze, Pascal
Issue Date:2006
Series/Report no.:Thünen-series of applied economic theory 65
Abstract:This paper develops an endogenous growth model with continuous labor reallocation. Economic integration increases the home availability of technologies globally developed. The wider technology pool has implications for the vintage structure of the manufacturing sector and affects the revenues earned in the two sectors R&D and manufacturing. The free exchange of technologies across the borders leads to structural change and labor reallocation within manufacturing and between the sectors. If there arises too much job destruction caused by economic integration, unemployment may be a consequence of more openness to technologies developed abroad.
Subjects:economic integration
job destruction
job creation
endogenous growth
JEL:F43
O33
J63
Document Type:Working Paper
Appears in Collections:Thünen Series of Applied Economic Theory, Universität Rostock

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