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Identifier to cite or link to this item: https://hdl.handle.net/10086/30970

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Title
A New Impetus for Endogenous Growth: R&D Offshoring via Virtual Labor Mobility
Creator
Creator Name
Nakanishi, Noritsugu Nakanishi, Noritsugu
Affiliation
Affiliation Name
Kobe University
Creator Name
Long, Ngo Van Long, Ngo Van
Affiliation
Affiliation Name
McGill University
Affiliation
Affiliation Name
Hitotsubashi University
Editor
Contributor Name
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Key Word
R&D offshoring
Virtual labor mobility
Time zone difference
Endogenous growth
North-South trade
JEL
F43
O41
Abstract
We develop a simple North-South model of quality ladders to show that the virtual mobility of labor across time zones, facilitated by the advance in communication technology, can raise the endogenous growth rate of the world economy. The unique balanced growth rate is increasing in the endowments of skilled labor in both countries and decreasing in the rate of impatience. Moreover, we find that partial R&D offshoring to the South has initially a negative effect on the level of skilled wages in the North, but this is compensated for by its positive effect on the growth rate in both North and South.
Publisher
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Issued Date
2020-02
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Discussion paper series ; No. HIAS-E-95
Number of Pages
58
Sponsorship
Nakanishi acknowledges the financial support of the Japan Society for the Promotion of Science: Grant-in-Aid for Scientific Research (A), No.16H02016.
Appears in Collections
Discussion paper series / Hitotsubashi Institute for Advanced Study, Hitotsubashi University
URL
https://hdl.handle.net/10086/30970