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 language | English |
|---|---|
| Pages (from-to) | 697-717 |
| Number of pages | 21 |
| Journal | Review of International Economics |
| Volume | 19 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2011 Sep |
| Externally published | Yes |
Fingerprint
ASJC Scopus subject areas
- Geography, Planning and Development
- Development
Cite this
Paths of development and wage variations. / Kiyota, Kozo.
In: Review of International Economics, Vol. 19, No. 4, 09.2011, p. 697-717.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Paths of development and wage variations
AU - Kiyota, Kozo
PY - 2011/9
Y1 - 2011/9
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=80051906344&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=80051906344&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9396.2011.00976.x
DO - 10.1111/j.1467-9396.2011.00976.x
M3 - Article
VL - 19
SP - 697
EP - 717
JO - Review of International Economics
JF - Review of International Economics
SN - 0965-7576
IS - 4
ER -