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Globalisation and wage differentials : a spatial analysis

Fingleton, B. and Baddeley, M. C. (2011) Globalisation and wage differentials : a spatial analysis. Manchester School, 79 (5). pp. 1018-1034. ISSN 1463-6786

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Abstract

Fujita, Krugman and Venables (FKV) develop a model in which international wage differentials encourage industrial mobility. We argue that globalization has another important dimension. Shocks may originate in a single country but, with modern transportation and telecommunications media, shocks spread quickly and with multiple shocks complex spillovers will be generated. We assess these forces in an analysis of international wage convergence, identifying a non-linear relationship and showing that not all countries converge. Given that the FKV model omits many of the causes of non-convergence, our evidence further demonstrates that the FKV model could usefully be extended.

Item type: Article
ID code: 41418
Keywords: spillovers, wage differentials, Economic Theory, Economics and Econometrics
Subjects: Social Sciences > Economic Theory
Department: Strathclyde Business School > Economics
Related URLs:
Depositing user: Pure Administrator
Date Deposited: 13 Oct 2012 09:59
Last modified: 27 Mar 2014 10:34
URI: http://strathprints.strath.ac.uk/id/eprint/41418

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