Wages, Profitability, and Growth in a Small Open Economy

May 1, 1990

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Format: Chicago

Bankim Chadha. Wages, Profitability, and Growth in a Small Open Economy, (USA: International Monetary Fund, 1990) accessed September 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines issues raised by the evolution of a rapidly growing small open economy—Singapore—from a labor-intensive, low-technology production base to a capital-intensive, high-technology, knowledge-and-skill-intensive emphasis as it approached the limits of its resource constraints in the labor market. In order to analyze the process of restructuring a model of endogenous growth for a small open economy that is driven by increases in labor productivity from learning and that allows for the dynamic acquisition of comparative advantage is developed. In this framework the effects of various policies and exogenous shocks on the direction and pace of restructuring are investigated.

Subject: Employment, Labor, Labor costs, Labor force, Wage adjustments, Wages

Keywords: Employment, Global, High-technology good, Labor costs, Labor force, Learning by doing, Open economy, Physical capital, Productivity increase, Rate of return, Shifts production, Wage adjustments, Wage-correction policy, Wages, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1990/045
Stock No:

WPIEA0451990
ISBN:

9781451974188
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 38, No. 1, March 1991.

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