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The Cournot-Ricardo Solution under Domestic Free Movement of Labour

The Cournot-Ricardo Solution under Domestic Free Movement of Labour This paper analyses the properties of the Cournot-Ricardo solution if workers have incentives to move from low to high profit industries. By construction, these movements contribute to the improvement of the competitiveness of countries with free movement of labour, due to the increase in size of industries with a comparative advantage. However, in general, it is not sufficient to guarantee convergence to the Ricardo-Mill solution. In conclusion, under the inter-industry movement of labour, economies are more competitive, but specialisation might not coincide with that predicted by the Ricardo-Mill model. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png "Journal of Industry, Competition and Trade" Springer Journals

The Cournot-Ricardo Solution under Domestic Free Movement of Labour

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References (10)

Publisher
Springer Journals
Copyright
Copyright © 2017 by Springer Science+Business Media, LLC
Subject
Economics; Industrial Organization; Political Economy/Economic Policy; R & D/Technology Policy; European Integration; Microeconomics; International Economics
ISSN
1566-1679
eISSN
1573-7012
DOI
10.1007/s10842-017-0258-z
Publisher site
See Article on Publisher Site

Abstract

This paper analyses the properties of the Cournot-Ricardo solution if workers have incentives to move from low to high profit industries. By construction, these movements contribute to the improvement of the competitiveness of countries with free movement of labour, due to the increase in size of industries with a comparative advantage. However, in general, it is not sufficient to guarantee convergence to the Ricardo-Mill solution. In conclusion, under the inter-industry movement of labour, economies are more competitive, but specialisation might not coincide with that predicted by the Ricardo-Mill model.

Journal

"Journal of Industry, Competition and Trade" – Springer Journals

Published: Aug 31, 2017

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