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Globalization, Technological Change, and Employment
Englisch
230 b
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The question of gain from the degree of economic openness, inboth trade and investment, is challenged in this study. Thecomputable general equilibrium (CGE) model named GTAP has beenmodified to address the question above under the non-Classicalassumptions, which include technological improvement, scaleeconomies, and imperfect competition. The North-South analysis hasbeen adopted by assuming that the developed region is the leader inmachinery improvement, while the rest of the world is the South.Moreover, the electronic equipment sector in industrializeddeveloping countries is assumed to have economies of scale in theproduction process with the Cournot oligopolistic competition.Simulation exercises have been performed as scenario steps ofmovement toward globalization, which include the macroeconomicelement changes (trade and investment liberalizations) andmicroeconomic element changes (technological improvement, scaleeconomies, and imperfect competition). The evidence of simulationresults help us explore and understand more about the internationaltrade theories under the general equilibrium context andassumptions.
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