Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/73223 
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 0513
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
This paper explores the features of a dynamic multisectoral model which focuses on the relationship between income distribution, growth and international specialization. The model is explored both for the steady-state properties and the transitory dynamics of integrated economies. Income inequality affects the patterns of growth and international specialization as the model uses non-linear Engel curves and hence different income groups are characterized by different expenditure patterns. At the same time income distribution is also reflected in the relative wage rates of skilled to unskilled workers, i.e. the skill premium, and hence the wage structure affects comparative costs of industries which have different skill intensities. The model is applied to a situation which analyses qualitatively different economic development strategies of catching-up economies (a 'Latin American' scenario and a 'South East Asian' scenario).
Subjects: 
income distribution
growth
international economic integration
catching-up
international specialization
JEL: 
F15
F16
F43
O15
O41
Document Type: 
Working Paper

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