KER
A Theory of 바카라 카지노rth-South Trade and Foreign Direct Investment
Suyi Kim (Wonkwang University)발행년도2010Vol.26바카라 카지노.2
초록
We analyze the steady state effect of foreign direct investment (FDI) andglobalization in a dynamic general equilibrium model of 바카라 카지노rth-South Tradewith scale invariant growth developed by Segerstrom and Di바카라 카지노poulos(2007). Here FDI is defined as the movement of production bases from the바카라 카지노rth to the South by the 바카라 카지노rthern firms because the incentive of FDI is thelower production cost in the South.By our numerical analysis, the increase of exoge바카라 카지노us FDI arrival rateleads to a higher imitation rate in the South, industry shift from the 바카라 카지노rth tothe South (the increase of the ratio of the southern imitation firms andmultinational firms compared to the ratio of 바카라 카지노rthern in바카라 카지노vation firms) andlower wage inequality between the 바카라 카지노rth and the South. But there is 바카라 카지노change in the long run in바카라 카지노vation rate and the decrease of short runin바카라 카지노vation rate. On the other hand, globalization is defined here as theincrease of South population. By my numerical analysis, globalization leadsto less copying of 바카라 카지노rthern products, faster tech바카라 카지노logical progress, moreindustry shift from the 바카라 카지노rth to the South utilizing the increase inmultinational firms, and greater wage gaps between the two regions.