Education, trade and investment liberalizations

• 成果类型: Article; Proceedings Paper
• 署名作者: Hoffmann, AN
• 署名单位: Organisation for Economic Co-operation & Development (OECD)
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(02)00053-3
• 发表日期: 2003
• 页码: 433-453
• 关键词: multinational firms; education; multiple equilibria; Developing countries

摘要

Empirical evidence suggests a two-way causality between skilled labor and inward direct investment. I construct a general equilibrium model that allows for endogenous firm and plant-location decisions and the endogenous accumulation of skilled labor. I examine the effect of an education subsidy when trade is liberalized and investment is restricted and vice versa. For an initially skilled-labor-scarce country, I show that an education subsidy under investment liberalization can jump the economy to a high-level equilibrium, and that it may be possible to remove the subsidy completely and remain at the superior equilibrium. (C) 2002 Elsevier Science B.V. All rights reserved.