Distance, skill deepening and development
Subtitle: will peripheral countries ever get rich?
By: Stephen Redding, Peter K. Schott.
Contributors: Schott, Peter K.; London School of Economics and Political Science. Centre for Economic Performance.
Series: [Discussion paper ;; no. 572]; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 572.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2003
Place of publication: [London]
Language: eng
Format: Electronic resource
Subjects: Economic geography.
Description: "This paper models the relationship between countries' distance from global economic activity, endogenous investments in education, and economic development. Firms in remote locations pay greater trade costs on both exports and intermediate imports, reducing the amount of value added left to remunerate domestic factors of production. If skill- intensive sectors have higher trade costs, more pervasive input-output linkages, or stronger increasing returns to scale, we show theoretically that remoteness depresses the skill premium and therefore incentives for human capital accumulation. Empirically, we exploit structural relationships from the model to demonstrate that countries with lower market access have lower levels of educational attainment. We also show that the world''s most peripheral countries are becoming increasingly economically remote over time"--London School of Economics web site.
Notes: Includes bibliographical references.
Title from summary page as viewed on 1/6/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.