Wages, Profitability, and Growth in a Small Open Economy

Download or read book Wages, Profitability, and Growth in a Small Open Economy written by Mr.Bankim Chadha and published by International Monetary Fund. This book was released on 1990-05-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines issues raised by the evolution of a rapidly growing small open economy—Singapore—from a labor-intensive, low-technology production base to a capital-intensive, high-technology, knowledge-and-skill-intensive emphasis as it approached the limits of its resource constraints in the labor market. In order to analyze the process of restructuring a model of endogenous growth for a small open economy that is driven by increases in labor productivity from learning and that allows for the dynamic acquisition of comparative advantage is developed. In this framework the effects of various policies and exogenous shocks on the direction and pace of restructuring are investigated.