EconStor >
EconStor Direct >
Other Publications / Sonstige Publikationen, EconStor Direct >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/65661
  
Title:Critical Review of 'A Simple Model of Firm Heterogeneity, International Trade and Wages' PDF Logo
Authors:Atif, Syed Muhammad
Issue Date:26-Oct-2012
Abstract:This report critically analyses the paper "A Simple Model of Firm Heterogeneity, International Trade and Wages' authored by, Stephen Ross Yeaple. Yeaple (2005) introduces a static model in which ex-ante homogeneous firms are differentiated based on heterogeneity in technology adoption and skill selection. The process of decision making is based on comparative study of revenues and costs associated with acquisition of technology and labor. By segmenting technology into high- and low-tech, and labor into high- and low-skilled, Yeaple suggests that high-tech firms hire skilled labor at greater wages and yield the access to international market, while on the other hand, the low-tech firms hire moderate skilled labor, pay lower wages and supply to the domestic market only. Furthermore, he shows that under an open economy, a reduction in costs of international trade leads to an increase in share of high-tech (exporting) firms and induces some low-tech firms to switch to the high-tech industry.
Subjects:Firm Heterogeneity
International Trade
JEL:F16
J21
Document Type:Other
Appears in Collections:Other Publications / Sonstige Publikationen, EconStor Direct

Files in This Item:
File Description SizeFormat
Critical Review.pdf1.37 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/65661

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.