Figure 1.
Two countries each one with two specialized industries
-
Previous Article
Cooperative dynamic advertising via state-dependent payoff weights
- JDG Home
- This Issue
- Next Article
July
2019, 6(3): 179-194.
doi: 10.3934/jdg.2019013
Free mobility of capital and Labor force in a two-country model: The dynamic game for growth
| 1. | Facultad de Economía UASLP, Av. Pintores S7N, San Luis Potosí, CP 78280, México |
| 2. | DESP University of Urbino Carlo Bo, Italy and Research member at UAdeC, México |
| 3. | Ministry of Economy and Finance, Italy |
| 4. | School of Public Administration, Universiry of Gothemburg, Sweden |
In this paper, we consider a two-country and two-sector economy, where firms can choose to be innovative or not innovative, and workers to be skilled or unskilled. Using a dynamic game, we argue that exploiting the comparative advantages a country has in producing goods that use the most abundant factor of production, free mobility of capital and labor is beneficial for economic growth. However, if a country has a comparative advantage in a sector that uses intensely unskilled labor (which is the case of several underdeveloped economies), a poverty trap may arise. For this reason we argue that national Governments must ensure the technological development to improve competitiveness and therefore a social optimal use of the comparative advantages.
Mathematics Subject Classification:
C70, C73, F12, F16, F20, F42, O30.
Citation:
Elvio Accinelli, Edgar Sánchez Carrera, Laura Policardo, Osvaldo Salas. Free mobility of capital and Labor force in a two-country model: The dynamic game for growth. Journal of Dynamics & Games,
2019, 6
(3)
: 179-194.
doi: 10.3934/jdg.2019013
![]()
References:
| [1] |
E. Accinelli, B. Bazzano, F. Robledo and P. Romero,
Nash Equilibrium in Evolutionary Competitive Models of Firms and workers, Journal of Dynamics and Games., 2 (2015), 1-32.
doi: 10.3934/jdg.2015.2.1. |
| [2] |
E. Accinelli and E. Sánchez Carrera, Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention, Structural Change Economic Dynamics, 22 (2011), 30-40. Google Scholar |
| [3] |
E. Accinelli, J. G. Brida and E. Sánchez Carrera, Imitative behavior in a two-population model in advances in dynamic games, Annals of the International Society of Dynamic Games, (2010). Google Scholar |
| [4] |
T. Agémon, Who gets what: The MNE, the national state and the distributional effects of globalization, Journal of International Business Studies, 34 (2003), 416-427. Google Scholar |
| [5] |
H. Fofack, Technology Trap And Poverty Trap In Sub-Saharan Africa, Policy Research Working Papers, 2008. Google Scholar |
| [6] |
R. Gibbons and L. Katz, Does unmeasured ability explain inter-industry wage differentials, The Review of Economic Studies, 59 (1992), 515-535. Google Scholar |
| [7] |
J. R. Harris and M. P. Todaro, (1970), Migration, unemployment and development: A two-sector analysis, The American Economic Review, 60 (1992), 126-142. Google Scholar |
| [8] |
A. S. Herbert, A behavioral model of rational choice, The Quarterly Journal of Economics, 69 (1955), 99-118. Google Scholar |
| [9] |
A. B. Krueger and L. H. Summers, Efficiency wages and the inter-industry wage structure, Econometrica, 56 (1988), 259-293. Google Scholar |
| [10] |
K. A. Lawler and H. Seddighi, International Economics: Theories, Themes, and Debates, Pearson Education, 2001. Google Scholar |
| [11] | B. Ohlin, Interregional and International Trade, Harvard University press, 1933. Google Scholar |
| [12] |
D. Ricardo, On the Principles of Political Economy and Taxation (1 ed.), London: John Murray, 1817. Google Scholar |
| [13] |
A. Smith, An Inquiry into the Nature and Causes of the Wealth of Nations. 1 (1 ed.), London: W. Strahan, 1776, Retrieved 2012-12-07, volume 2. Google Scholar |
| [14] |
Y.-C. Wang and P. Wang, Barriers to Health and the Poverty Trap, NBER Working paper, 2013. Google Scholar |
show all references
References:
| [1] |
E. Accinelli, B. Bazzano, F. Robledo and P. Romero,
Nash Equilibrium in Evolutionary Competitive Models of Firms and workers, Journal of Dynamics and Games., 2 (2015), 1-32.
doi: 10.3934/jdg.2015.2.1. |
| [2] |
E. Accinelli and E. Sánchez Carrera, Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention, Structural Change Economic Dynamics, 22 (2011), 30-40. Google Scholar |
| [3] |
E. Accinelli, J. G. Brida and E. Sánchez Carrera, Imitative behavior in a two-population model in advances in dynamic games, Annals of the International Society of Dynamic Games, (2010). Google Scholar |
| [4] |
T. Agémon, Who gets what: The MNE, the national state and the distributional effects of globalization, Journal of International Business Studies, 34 (2003), 416-427. Google Scholar |
| [5] |
H. Fofack, Technology Trap And Poverty Trap In Sub-Saharan Africa, Policy Research Working Papers, 2008. Google Scholar |
| [6] |
R. Gibbons and L. Katz, Does unmeasured ability explain inter-industry wage differentials, The Review of Economic Studies, 59 (1992), 515-535. Google Scholar |
| [7] |
J. R. Harris and M. P. Todaro, (1970), Migration, unemployment and development: A two-sector analysis, The American Economic Review, 60 (1992), 126-142. Google Scholar |
| [8] |
A. S. Herbert, A behavioral model of rational choice, The Quarterly Journal of Economics, 69 (1955), 99-118. Google Scholar |
| [9] |
A. B. Krueger and L. H. Summers, Efficiency wages and the inter-industry wage structure, Econometrica, 56 (1988), 259-293. Google Scholar |
| [10] |
K. A. Lawler and H. Seddighi, International Economics: Theories, Themes, and Debates, Pearson Education, 2001. Google Scholar |
| [11] | B. Ohlin, Interregional and International Trade, Harvard University press, 1933. Google Scholar |
| [12] |
D. Ricardo, On the Principles of Political Economy and Taxation (1 ed.), London: John Murray, 1817. Google Scholar |
| [13] |
A. Smith, An Inquiry into the Nature and Causes of the Wealth of Nations. 1 (1 ed.), London: W. Strahan, 1776, Retrieved 2012-12-07, volume 2. Google Scholar |
| [14] |
Y.-C. Wang and P. Wang, Barriers to Health and the Poverty Trap, NBER Working paper, 2013. Google Scholar |
Figure 2.
A country in poverty trap
| [1] |
Dario Bauso, Thomas W.L. Norman. Approachability in population games. Journal of Dynamics & Games, 2020 doi: 10.3934/jdg.2020019 |
| [2] |
Gengsheng Wang, Yashan Xu. Advantages for controls imposed in a proper subset. Discrete & Continuous Dynamical Systems - B, 2013, 18 (9) : 2427-2439. doi: 10.3934/dcdsb.2013.18.2427 |
| [3] |
Genni Fragnelli, A. Idrissi, L. Maniar. The asymptotic behavior of a population equation with diffusion and delayed birth process. Discrete & Continuous Dynamical Systems - B, 2007, 7 (4) : 735-754. doi: 10.3934/dcdsb.2007.7.735 |
| [4] |
Keng Deng, Yixiang Wu. Asymptotic behavior for a reaction-diffusion population model with delay. Discrete & Continuous Dynamical Systems - B, 2015, 20 (2) : 385-395. doi: 10.3934/dcdsb.2015.20.385 |
| [5] |
Dongxue Yan, Xianlong Fu. Asymptotic behavior of a hierarchical size-structured population model. Evolution Equations & Control Theory, 2018, 7 (2) : 293-316. doi: 10.3934/eect.2018015 |
| [6] |
Cecilia Cavaterra, Maurizio Grasselli. Asymptotic behavior of population dynamics models with nonlocal distributed delays. Discrete & Continuous Dynamical Systems - A, 2008, 22 (4) : 861-883. doi: 10.3934/dcds.2008.22.861 |
| [7] |
Meng Liu, Ke Wang. Population dynamical behavior of Lotka-Volterra cooperative systems with random perturbations. Discrete & Continuous Dynamical Systems - A, 2013, 33 (6) : 2495-2522. doi: 10.3934/dcds.2013.33.2495 |
| [8] |
Linlin Li, Bedreddine Ainseba. Large-time behavior of matured population in an age-structured model. Discrete & Continuous Dynamical Systems - B, 2020 doi: 10.3934/dcdsb.2020195 |
| [9] |
Xiaoyue Li, Xuerong Mao. Population dynamical behavior of non-autonomous Lotka-Volterra competitive system with random perturbation. Discrete & Continuous Dynamical Systems - A, 2009, 24 (2) : 523-545. doi: 10.3934/dcds.2009.24.523 |
| [10] |
Meng Liu, Chuanzhi Bai, Yi Jin. Population dynamical behavior of a two-predator one-prey stochastic model with time delay. Discrete & Continuous Dynamical Systems - A, 2017, 37 (5) : 2513-2538. doi: 10.3934/dcds.2017108 |
| [11] |
Mingxing Zhou, Jing Liu, Shuai Wang, Shan He. A comparative study of robustness measures for cancer signaling networks. Big Data & Information Analytics, 2017, 2 (1) : 87-96. doi: 10.3934/bdia.2017011 |
| [12] |
T. W. Leung, Chi Kin Chan, Marvin D. Troutt. A mixed simulated annealing-genetic algorithm approach to the multi-buyer multi-item joint replenishment problem: advantages of meta-heuristics. Journal of Industrial & Management Optimization, 2008, 4 (1) : 53-66. doi: 10.3934/jimo.2008.4.53 |
| [13] |
Nina Yan, Baowen Sun. Comparative analysis of supply chain financing strategies between different financing modes. Journal of Industrial & Management Optimization, 2015, 11 (4) : 1073-1087. doi: 10.3934/jimo.2015.11.1073 |
| [14] |
Mario Grassi, Giuseppe Pontrelli, Luciano Teresi, Gabriele Grassi, Lorenzo Comel, Alessio Ferluga, Luigi Galasso. Novel design of drug delivery in stented arteries: A numerical comparative study. Mathematical Biosciences & Engineering, 2009, 6 (3) : 493-508. doi: 10.3934/mbe.2009.6.493 |
| [15] |
Khaled Mohammed Saad, Eman Hussain Faissal AL-Sharif. Comparative study of a cubic autocatalytic reaction via different analysis methods. Discrete & Continuous Dynamical Systems - S, 2019, 12 (3) : 665-684. doi: 10.3934/dcdss.2019042 |
| [16] |
Siwei Duo, Hong Wang, Yanzhi Zhang. A comparative study on nonlocal diffusion operators related to the fractional Laplacian. Discrete & Continuous Dynamical Systems - B, 2019, 24 (1) : 231-256. doi: 10.3934/dcdsb.2018110 |
| [17] |
José M. Amigó, Beata Graff, Grzegorz Graff, Roberto Monetti, Katarzyna Tessmer. Detecting coupling directions with transcript mutual information: A comparative study. Discrete & Continuous Dynamical Systems - B, 2019, 24 (8) : 4079-4097. doi: 10.3934/dcdsb.2019051 |
| [18] |
Paola Goatin, Elena Rossi. Comparative study of macroscopic traffic flow models at road junctions. Networks & Heterogeneous Media, 2020, 15 (2) : 261-279. doi: 10.3934/nhm.2020012 |
| [19] |
Donglin Wang, Honglan Xu, Qiang Wu. Averaging versus voting: A comparative study of strategies for distributed classification. Mathematical Foundations of Computing, 2020 doi: 10.3934/mfc.2020017 |
| [20] |
Alan Beggs. Learning in monotone bayesian games. Journal of Dynamics & Games, 2015, 2 (2) : 117-140. doi: 10.3934/jdg.2015.2.117 |
Impact Factor:
Tools
Metrics
Other articles
by authors
[Back to Top]