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This paper presents an economic geography model with two differentiated sectors that exhibit weaker inter and stronger intra-industry input-output linkages. Labour is also differentiated according to skills in a hierarchy of tasks they can perform. Globalisation occurs in two distinct phases, leading to the agglomeration of an industry (manufacturing) in the first wave, which is subsequently displaced by the other industry (services) when the second wave of globalisation takes place. Because of agglomeration effects, the increase in relative endowment of a factor may increase its relative wages, leading to more inequality. Within and between nations inequality can result.
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Evolution of locations, specialisation and factor returns with two distinct waves of globalisation
2008, Centre for Economic Performance, London School of Economics and Political Science
Electronic resource
in English
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Published in
London
Edition Notes
Title from PDF file (viewed on Oct. 10, 2008).
"June 2008."
Includes bibliographical references.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.
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