By Daniel King
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These industries are therefore classified in the Segmented, low-R&D cluster. Given these simplifying assumptions, the investigation of trade specialisation in the following section shows results for primary products separately. A final point concerns the availability of skilled labour. Even in the absence of barriers, countries may be unable to specialise in sectors requiring high numbers of skilled workers. 6 confirms that highR&D sectors employ a higher proportion of skilled workers. High skills are likely to be a particular feature of the Fragmented, high-R&D cluster, since small firms depend on innovation and development for the creation of product niches to stay in the market.
The BS model can be summarised by the following equations. 1) TRADE AND COMPETITIVENESS IN ARGENTINA, BRAZIL AND CHILE: NOT AS EASY AS A-B-C – ISBN-92-64-10871-8 © OECD 2004 42 – 1. THE IMPACT OF EXCHANGE RATE REGIMES ON REAL EXCHANGE RATES IN SOUTH AMERICA, 1990-2002 Under perfect competition, the following conditions for profit maximisation of firms hold. 3) with k being the capital-labour ratio and P being prices. 4) with the small letters denoting the logarithm of variables. In the standard BS model, Pn/Pt is determined only by the supply side.
1, pp. 325-34. , B. E. Cumby (1996), “Relative Labour Productivity and the Real Exchange Rate in the Long Run: Evidence for a Panel of OECD Countries”, Discussion Paper, No. 1464, Centre for Economic Policy Research. Bhagwati, J. (1984), “Why Are Services Cheaper in Poor Countries”, The Economic Journal, Vol. 94, pp. 279-86. , A. C. Wolf, (1994), “International Evidence on Tradables and Non-tradables Inflation”, European Economic Review, Vol. 38, pp. 1225-44. TRADE AND COMPETITIVENESS IN ARGENTINA, BRAZIL AND CHILE: NOT AS EASY AS A-B-C – ISBN-92-64-10871-8 © OECD 2004 1.
How to Win at Chess - 10 Golden Rules to Follow by Daniel King