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SIM, Seung-Gyu
Department Aoyama Gakuin University Department of International Economics, School of International Politics, Economics and Communication Position Professor |
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| Language | English |
| Publication Date | 2018/02 |
| Type | Academic Journal |
| Peer Review | Peer reviewed |
| Title | Imperfect Labor Mobility and the Trickle-down Effect in International Trade |
| Contribution Type | Collaboration |
| Journal | Journal of Korea Trade |
| Journal Type | Another Country |
| Publisher | the Korea Trade Association |
| Volume, Issue, Page | 22(1),pp.68-83 |
| Author and coauthor | Sungwan Hong, Soo Hyun Oh, and Seung-Gyu Sim |
| Details | This paper demonstrates that subsidizing export industries may raise the total value-added of an economy but deteriorate aggregate welfare. This worsens especially when the supply of non-tradable domestic goods is inelastic, and the demand for them is more substitutable by tradable goods. To reinforce the trickle-down effect, it is necessary to facilitate efficient labor reallocation and to induce capitalization in the non-tradable sector. |