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Factor Mobility (factor + mobility)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	72%
Humanities and Social Sciences	27%

Selected Abstracts

INCORPORATING TECHNOLOGY DIFFUSION, FACTOR MOBILITY AND STRUCTURAL CHANGE INTO CROSS-REGION GROWTH REGRESSION: AN APPLICATION TO CHINA,

JOURNAL OF REGIONAL SCIENCE, Issue 3 2010
Laixiang Sun
ABSTRACT This paper advocates a spatial dynamic model that introduces technology diffusion, factor mobility, and structural change into the cross-region growth regression. The spatial setting is derived from theory rather than spatial statistical tests. An application of this model to the study of cross-province growth in China over the period 1980,2005 indicates that incomes are spatially correlated, which highlights the significance of technology diffusion and factor mobility. Furthermore, the integration of neoclassical growth empirics and the structural change perspective of development economics provide a much improved account of interprovincial variations in income levels and economic growth. [source]

Output/Endowment and Commodity/Factor Price Relationships and Welfare in a Multilateral Trade Model with Partial Factor Mobility

PACIFIC ECONOMIC REVIEW, Issue 3 2000
Bharat R. Hazari
A multilateral model of trade with both commodity flows and partial mobility of factor flows is set up. This model is used to develop factor endowment/output relationships as well as commodity/factor price relationships. Welfare consequences of these parametric shifts are examined. The model is built on the customs union framework which involves three countries and both commodity and factor flows. Owing to spillover effects in multilateral trade models, many nontraditional results are obtained. Many developed countries accept skilled and unskilled migrants from other countries. These migrants are generally accepted on a quota system. Moreover, it has been established that an increase in the migrant quota in the presence of factor mobility may raise or lower the output and welfare in the country not receiving migrants. In fact it is shown that the non-migrant receiving country could be immiserized due to loss of capital. The main message of this paper is that in a multilateral trade framework there exist international spillover effects which must be taken into consideration in national policymaking. [source]

Factor mobility and fiscal policy in the EU: policy issues and analytical approaches

ECONOMIC POLICY, Issue 31 2000
David E. Wildasin
Increased integration of labour and capital markets creates significant challenges for the welfare states of modern Europe. Taxation of capital and labour that finances extensive programmes of cash and in-kind redistribution creates incentives for capital owners and workers to locate in regions where they obtain favourable fiscal treatment. Competition among countries for mobile resources constrains their ability to alter the distribution of income and may lead to reductions in the size and scope of redistributive policies. Mobility of labour and capital is imperfect, however. Recent trends indicate that labour and capital are neither perfectly mobile nor perfectly immobile, but rather adjust gradually to market conditions and economic policies. This paper presents an explicitly dynamic analysis showing that governments can achieve some redistribution when it is costly for factors of production to relocate. As the costs of factor mobility fall, however, the effectiveness of redistributive policies is more limited, and governments have weaker incentives to pursue them. Liberalized immigration policies, EU enlargement, and other steps that promote integration of the factors markets of Western Europe with those of surrounding regions thus present a challenge to policy-makers if they also wish to maintain fiscal systems with extensive redistribution. [source]

China's regional income disparity An alternative way to think of the sources and causes1

THE ECONOMICS OF TRANSITION, Issue 1 2008
Ding Lu
Factor mobility; regional income inequality; China Abstract Using data on China's provincial economies for the period 1978,2005, we decomposed the causes and factors that have contributed to inter-regional per capita income disparity. Variance in capital per employee and variance in capital elasticity are found to be the two main sources of income disparity while the employment,labour force ratio is shown to be an important factor in containing the rise of income disparity. An analysis on inter-regional factor reallocation effects reveals their relatively small and insignificant contributions to overall growth performance. It is also discovered that capital has in most years flowed in the right direction to pursue higher marginal productivity across provincial economies. Inter-provincial labour movement, on the other hand, had not displayed significant equilibrating effects until institutional reforms started to allow freer inter-regional labour mobility in later years. Generally, we conclude that market-oriented factor mobility has played a crucial role in equalizing factor returns as well as enhancing growth efficiency across regions. [source]

Four Simple Tests of Campaign Contributions and Trade Policy Preferences

ECONOMICS & POLITICS, Issue 2 2004
Eugene Beaulieu
This paper uses campaign contribution data to examine trade policy preferences among political action committees. With perfect factor mobility, as the Heckscher,Ohlin (HO) model assumes, interest group trade positions should depend on their factor of production but not on their industry. We show, consistent with the 2 × 2 HO model, that capital groups consistently back representatives supporting trade liberalization while labor groups favor protectionists. Unlike previous work, we also measure the variation in trade policy preferences within capital and labor groups. We find evidence that the industry net export position significantly affects labor unions' trade policy preferences. Industry characteristics have no impact on capital group lobbying. The former result suggests that empirical analyses of labor PAC contributions that exclude industry characteristics may be misspecified. [source]

INCORPORATING TECHNOLOGY DIFFUSION, FACTOR MOBILITY AND STRUCTURAL CHANGE INTO CROSS-REGION GROWTH REGRESSION: AN APPLICATION TO CHINA,

Modeling Agglomeration and Dispersion in City and Country: Gunnar Myrdal, François Perroux, and the New Economic Geography

AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 1 2001
Stephen J. MeardonArticle first published online: 28 JUN 200
The "new economic geography" is a recent body of literature that seeks to explain how resources and production come to be concentrated spatially for reasons other than the standard "geographic" ones. Unlike alternative explanations of the geographic distribution of industry, the literature is not interdisciplinary. The new economic geography lies well within economics proper: it is an offspring of international trade theory, with models characterized by increasing returns, factor mobility, and transportation costs. The models explain the distribution of industry in terms of the opposition of an agglomerating force, the interaction of transportation costs and increasing returns to scale, with a dispersing force, commonly the interaction of transportation costs and a partially fixed input or output market. Some authors outside the new economic geography (e.g., Martin 1999) have criticized it as simplistic, irrelevant, or passé. They claim it employs overly abstract analysis, prioritizes mathematical technique over realistic explanation, and is reminiscent of the much earlier works of Gunnar Myrdal and François Perroux,in comparison to which, however, it falls short. This paper investigates the similarities and differences between the new economic geography and the work of Myrdal and Perroux, who in the previous special issue of this journal were ranked by Zafirovsky (1999, pp. 596, 598) as among the leading twentieth century economic sociologists. I examine how the techniques of analysis and intuitive explanations of agglomeration compare between these economic sociologists and the new economic geographers. The paper highlights what has been gained and what has been lost by the new economic geographers, who generally eschew interdisciplinary study. [source]

Output/Endowment and Commodity/Factor Price Relationships and Welfare in a Multilateral Trade Model with Partial Factor Mobility

China's regional income disparity An alternative way to think of the sources and causes1

Perspective on Local Governance Reform in China

CHINA AND WORLD ECONOMY, Issue 2 2006
Mingxing Liu
H57; H71; P32; P35 Abstract This paper is an attempt to present an analysis of China's decentralization and local governance practices, the dilemmas rooted in the current institution. We argue that the misbehavior of local government officials is endogenous to China's central-local structure and that competition among localities has become distorted and constrained by various policy burdens and development mandates imposed from above. The information asymmetry for the enforcement cost of mandates that exists between central and local governments not only leads to difficulties and distortions in local performance evaluations, but also creates opportunities for local bureaucracy expansion and rent-seeking. Enhancing fiscal transfers, or strengthening political restraint, although necessary, would be far from enough to solve the local governance problems. The ultimate solution entails an in-depth deregulation reform on factor mobility and a furthest eradication of policy mandates for the local government. Edited by Xinyu Fan [source]

MIND THE GAP: UNEMPLOYMENT IN THE NEW EU REGIONS

JOURNAL OF ECONOMIC SURVEYS, Issue 1 2008
Anna Maria Ferragina
Abstract The paper surveys the theoretical and empirical literature on regional unemployment during transition in Central and Eastern Europe. The focus is on optimal speed of transition (OST) models and on comparison of them with the neo-classical tradition. In the typical neo-classical models, spatial differences essentially arise as a consequence of supply side constraints and institutional rigidities. Slow-growth, high-unemployment regions are those with backward economic structures and constraints on factors mobility contribute to making differences persistent. However, such explanations leave the question unanswered of how unemployment differences arise in the first place. Economic transition provides an excellent testing ground to answer this question. Pre-figuring an empirical law, the OST literature finds that the high degree of labour turnover of high unemployment regions is associated with a high rate of industrial restructuring and, consequently, that low unemployment may be achieved by implementing transition more gradually. Moreover, international trade, foreign direct investment and various agglomeration factors help explain the success of capital cities compared to peripheral towns and rural areas in achieving low unemployment. The evidence of the empirical literature on supply side factors suggests that wage flexibility in Central and Eastern Europe is not lower than in other EU countries, while labour mobility seems to reinforce rather than change the spatial pattern of unemployment. [source]