{
  "title": "Wages, Profitability, and Growth in a Small Open Economy",
  "publication": "IMF Working Papers, May 1, 1990",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/wages-profitability-and-growth-in-a-small-open-economy-3053",
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  "summary": "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 l",
  "sections": [
    {
      "heading": "Summary / Abstract",
      "content": "- Examines 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.\n- Develops 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.\n- Investigates, within this framework, the effects of various policies and exogenous shocks on the direction and pace of restructuring."
    },
    {
      "heading": "Model and Analytical Approach",
      "content": "- Endogenous growth model tailored to a small open economy.\n- Key driving mechanism: increases in labor productivity from learning (learning by doing).\n- Model permits dynamic acquisition of comparative advantage and analyzes sectoral restructuring from labor-intensive to capital- and skill-intensive production."
    },
    {
      "heading": "Findings and Insights",
      "content": "- Traces how restructuring occurs as resource constraints in the labor market bind in a rapidly growing small open economy.\n- Identifies the role of learning-driven labor productivity gains in facilitating shifts toward high-technology, knowledge-and-skill-intensive activities.\n- Analyzes how policies and exogenous shocks influence both the direction and the pace of the economy’s structural transformation."
    },
    {
      "heading": "Policy Implications and Investigations",
      "content": "- Evaluates the effects of various policies on restructuring (policy types not enumerated on the page).\n- Explores how wage adjustments and wage-correction policy interact with productivity increases and shifts in production.\n- Considers implications for employment, labor costs, and the rate of return as the economy transitions sectors."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subject: Employment, Labor, Labor costs, Labor force, Wage adjustments, Wages\n- Keywords: Employment, Global, high-technology good, Labor costs, Labor force, learning by doing, open economy, physical capital, productivity increase, rate of return, shifts production, Wage adjustments, wage-correction policy, Wages, WP\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/wages-profitability-and-growth-in-a-small-open-economy-3053"
    }
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    "Authors: Bankim Chadha",
    "Published: May 1, 1990",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451974188.001",
    "Examines 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.",
    "Develops 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.",
    "Investigates, within this framework, the effects of various policies and exogenous shocks on the direction and pace of restructuring.",
    "Endogenous growth model tailored to a small open economy.",
    "Key driving mechanism: increases in labor productivity from learning (learning by doing).",
    "Model permits dynamic acquisition of comparative advantage and analyzes sectoral restructuring from labor-intensive to capital- and skill-intensive production.",
    "Traces how restructuring occurs as resource constraints in the labor market bind in a rapidly growing small open economy.",
    "Identifies the role of learning-driven labor productivity gains in facilitating shifts toward high-technology, knowledge-and-skill-intensive activities.",
    "Analyzes how policies and exogenous shocks influence both the direction and the pace of the economy’s structural transformation.",
    "Evaluates the effects of various policies on restructuring (policy types not enumerated on the page).",
    "Explores how wage adjustments and wage-correction policy interact with productivity increases and shifts in production.",
    "Considers implications for employment, labor costs, and the rate of return as the economy transitions sectors.",
    "Subject: Employment, Labor, Labor costs, Labor force, Wage adjustments, Wages",
    "Keywords: Employment, Global, high-technology good, Labor costs, Labor force, learning by doing, open economy, physical capital, productivity increase, rate of return, shifts production, Wage adjustments, wage-correction policy, Wages, WP"
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