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 1467-9957 (https://doi.org/10.1111/j.1467-9957.2011.02217.x)

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.

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• Item metadata

  Item type:	Article
  ID code:	41418
  Dates:	Date Event September 2011 Published
  Subjects:	Social Sciences > Economic Theory
  Department:	Strathclyde Business School > Economics
  Depositing user:	Pure Administrator
  Date deposited:	13 Oct 2012 08:59
  Last modified:	11 Nov 2024 10:14
  Related URLs:	Scopus publication
  URI:	https://strathprints.strath.ac.uk/id/eprint/41418