Publication Type

Journal Article

Publication Date

1988

Abstract

Within the context of industrial restructuring, it is not uncommon to use terms, such as 'higher value-added per worker', or 'low or high value added activities', and 'high technology' industries. The present note attempts to use the theoretical work in the field of international trade to sharpen our understanding of the relationships among the concepts of value added per worker, capital accumulation, and technical progress. We show that for a large country, capital accumulation raises the real value added per worker in both industries. With neutral technical progress occurring in the L-intensive industry, it is possible for the terms of trade effect to lead to a decline in real labour productivity.

Discipline

Economics | Industrial Organization

Research Areas

Applied Microeconomics

Publication

Pakistan Development Review

Volume

27

First Page

211

Last Page

215

ISSN

0030-9729

Publisher

Pakistan Institute of Development Economists

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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