The paper examines the effect of inflation on the growth rate in economies with underground, or ”non-market”, sectors. The model incorporates a non-market good into an endogenous growth cash-inadvance economy with human capital. Taxes on labor and capital induce substitution into the...

This paper examines how variable output and profit share jointly determine investment and saving, while the difference between investment and saving determines the changes in output and profit share. Analysis of the resulting pair of differential equations yields novel implications for the...

In this paper we test the hypothesis that the sector bias of skill-biased technical change is important in explaining the rising relative wage of skilled workers in the manufacturing sector in three Central and Eastern European transition countries. The evidence for Hungary and Poland is...

In the trade-technology-wage debate, the effects of the various forms of technical progress on relative factor prices have been addressed in a number of contributions over the past decade. However, the existing literature is far from conclusive. The various contributions either relied on...

The issue of the impact of trade on economic performance and labour markets has been intensively discussed in the recent literature on trade liberalization and globalization where the debate was mainly about identifying the relative impact of trade and technology. The bulk of the existing...

For about a decade, GDP growth in Central European countries has been consistently faster than in the 'old' EU-15. As a first approximation, one can expect a growth differential of about 2 percentage points to prevail also in the future. This practical rule-of-thumb is broadly consistent with...

· Job creation in the new EU Member States (NMS) and the EU candidate countries remains low despite high GDP growth in most countries. However, there are significant differences in developments among these countries (most recently between Poland and the other new Member States). · Labour...

This paper develops a Schumpeterian model of international specialization and catching-up. In a previous version of the model we looked at the impact on international trade specialization when different patterns of technological catching-up are followed. One of these is a Gerschenkron pattern at...

Although there exists a vast literature on convergence and divergence of income levels across countries or regions at the aggregate level, there is only little work on convergence and / or divergence processes of productivity and wage levels at the more disaggregated industrial level. These are...

Casual evidence suggests that emerging and developing countries are often gaining market shares in world exports in technology-intensive sectors in the course of development. On the other hand textbook trade theory would suggest that these countries specialize in lower-tech industries. The...