Wages, Profitability, and Growth in a Small Open Economy
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 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.
Series:
Working Paper No. 1990/045
Subject:
Employment Labor Labor costs Labor force Wage adjustments Wages
Notes:
Also published in Staff Papers, Vol. 38, No. 1, March 1991.
English
Publication Date:
May 1, 1990
ISBN/ISSN:
9781451974188/1018-5941
Stock No:
WPIEA0451990
Pages:
40
Please address any questions about this title to publications@imf.org