Abstract
I have been asked to review the ‘effects of changes in the quality of factors of production, with special reference to changes in labour quality, for example through learning by doing’. Such a review, however, poses special difficulties, as the only substantial analytical and empirical literature in the area of labour quality and its interaction with the questions of international economics relates to the numerous contributions on the effect of skills, R and D, knowhow and related aspects of labour and technical change on the pattern of trade. However, this area has not only been extensively reviewed by me earlier;1 it is also precisely the subject matter of Gottfried Haberler’s paper at this Conference and will doubtless be the focal point of his discussants’ remarks.2
I have profited from the comments of Ragnar Bentzel, Ronald Jones and Robert Solow. Thanks are due to Robert Dohner for research assistance and for partial financial support to the National Science Foundation, Grant No. SOC74–13210.
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Bhagwati, J.N. (1977). Changes in Labour Quality and their Implications for the Analysis of Questions in International Trade. In: Ohlin, B., Hesselborn, PO., Wijkman, P.M. (eds) The International Allocation of Economic Activity. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-03196-2_32
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