Paths of development and wage variations

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

In analyzing the relationship between factor endowments and sectoral per capita output (the paths of development), it was shown empirically that the number of cones was neither one nor three but two, and that all countries fall into one of these two cones. This is a puzzle, because it is inconsistent with large wage variations across economies. This paper attempts to solve this puzzle, introducing complete and incomplete specialization into a multiple-cone model. Empirical results reveal that the two-cone Heckscher-Ohlin (HO) model can be consistent with HO specialization and wage variations across economies.

Original languageEnglish
Pages (from-to)697-717
Number of pages21
JournalReview of International Economics
Volume19
Issue number4
DOIs
Publication statusPublished - 2011 Sep 1
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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