Changes in Labour Quality and their Implications for the Analysis of Questions in International Trade

  • Jagdish N. Bhagwati


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


International Trade Adjustment Cost Brain Drain Saving Ratio Taste Change 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Arrow, K. J., ‘The Economic Implications of Learning by Doing’, Review of Economic Studies, June (1962).Google Scholar
  2. Arrow, K. J., ‘Higher Education as a Filter’, Journal of Public Economics, Vol. 2(3) (1973).Google Scholar
  3. Baldwin, R., Nontariff Distortions of International Trade, Brookings Institution (Washington DC, 1970).Google Scholar
  4. Bale, M., ‘Further Evidence on Cheh’s Hypothesis Using Direct Estimates of Adjustment Costs’, Mimeographed (1975).Google Scholar
  5. Bardhan, P., Economic Growth, Development, and Foreign Trade (John Wiley and Sons, New York, 1970).Google Scholar
  6. Bhagwati, J. and Johnson, H. G., ‘Notes on Some Controversies in the Theory of International Trade’, Economic Journal (March, 1960).Google Scholar
  7. Bhagwati, J. and Ramaswami, V. K., ‘Domestic Distortions and the Theory of Optimum Subsidy’, Journal of Political Economy (1963).Google Scholar
  8. Bhagwati, J., ‘The Pure Theory of International Trade: A Survey’, Economic Journal (1964).Google Scholar
  9. Bhagwati, J., The Theory and Practice of Commercial Policy, Frank Graham Memorial Lecture (1967), International Finance Section (Princeton University, 1968).Google Scholar
  10. Bhagwati, J., Trade, Tariffs and Growth (M.I.T. Press, Cambridge, 1969).Google Scholar
  11. Bhagwati, J. and Srinivasan, T. N., ‘Optimal Intervention to Achieve Non-Economic Objectives’, Review of Economic Studies (1969).Google Scholar
  12. Bhagwati, J. and Srinivasan, T. N., ‘On Reanalyzing the Harris-Todaro Model: Policy Rankings in the Case of Sector-Specific Wages, American Economic Review (1974).Google Scholar
  13. Bhagwati, J. and Hamada, K. (1974), ‘The Brain Drain, International Integration of Markets for Professionals and Unemployment: A Theoretical Analysis’, Journal of Development Economics; reprinted in Bhagwati (1976).Google Scholar
  14. Bhagwati, J., ‘Protection, Industrialization, Export Performance and Economic Development’, Paper prepared for U.N.C.T.A.D. IV Conference, Nairobi, May, 1976 (1975).Google Scholar
  15. Bhagwati, J. and Rodriguez, C. (1975), ‘Welfare-Theoretical Analyses of the Brain Drain’, Journal of Development Economics, Vol. 2(3); reprinted in Bhagwati (1976).Google Scholar
  16. Bhagwati, J. and Srinivasan, T. N., ‘Optimal Trade Policy and Compensation Under Endogenous Uncertainty: The Phenomenon of Market Disruption’, M.I.T. Working Paper No. 764(1975).Google Scholar
  17. Bhagwati, J. and Srinivasan, T. N., Foreign Trade Regimes and Economic Development: India, National Bureau of Economic Research (Columbia University Press, 1975a).Google Scholar
  18. Bhagwati, J. and Hamada, K., ‘Optimal Policy Intervention in the Presence of Brain Drain: Educational Subsidy and Tax on Emigrants’ Income’, M.I.T. Working Paper No. 172 (1976).Google Scholar
  19. Bhagwati, J. and Partington, M. (eds.), Taxing the Brain Drain: A Proposal, (Amsterdam: North Holland Co., 1976).Google Scholar
  20. Bhagwati, J. (ed.), The Brain Drain and Taxation: Theory and Empirical Analysis (Amsterdam: North Holland Co., 1976).Google Scholar
  21. Brecher, R., ‘Minimum Wage Rates and the Pure Theory of International Trade’, Quarterly Journal of Economics (Feb., 1974a).Google Scholar
  22. Brecher, R., ‘Optimal Commercial Policy for an Open Economy’, Journal of International Economics (May, 1974b).Google Scholar
  23. Cheh, J., ‘United States Concessions in the Kennedy Round and Short-Run Labour Adjustment Costs’, Journal of International Economics (1974).Google Scholar
  24. Chipman, J., ‘The Transfer Problem Once Again’, in G. Horwich and P. A. Samuelson (eds.), Trade, Stability and Macroeconomics (New York: Academic Press, 1974).Google Scholar
  25. Corden, W. M., ‘Tariffs, Subsidies and the Terms of Trade’, Economica (1957).Google Scholar
  26. Corden, W. M. and Findlay, R., ‘Urban Unemployment, Intersectoral Capital Mobility and Development Policy’, Economica (1975).Google Scholar
  27. Desai, A., ‘Research and Development in India’, Margin (Quarterly Journal of NCAER, New Delhi), Vol. 7(2) (1975).Google Scholar
  28. Findlay, R., International Trade and Development Theory (New York: Columbia University Press, 1973).Google Scholar
  29. Grubel, H. and Lloyd, P., Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products (New York) John Wiley and Sons, 1975).Google Scholar
  30. Haberler, G., ‘Some Problems in the Pure Theory of International Trade’, Economic Journal (June, 1950).Google Scholar
  31. Hamada, K. and Bhagwati, J. (1975), ‘Domestic Distortions, Imperfect Information and the Brain Drain’, Journal of Development Economics; reprinted in Bhagwati (1976).Google Scholar
  32. Harris, J. R. and Todaro, M. P., ‘Migration, Unemployment and Development; A Two-sector Analysis’, American Economic Review, 60 (March, 1970).Google Scholar
  33. Hirschman, A., How to Divest in Latin America and Why, Princeton International Finance Section (1969).Google Scholar
  34. Johnson, H. G., ‘Optimal Trade Intervention in the Presence of Domestic Distortions’, in R. E. Caves, P. B. Kenen and H. G. Johnson (eds.), Trade, Growth and the Balance of Payments (Amsterdam: North Holland Publishing Co., 1965).Google Scholar
  35. Jones, R. W., ‘Presumption and the Transfer Problem’, Journal of International Economics (1975).Google Scholar
  36. Kemp, M. C., ‘The Relation Between Changes in International Demand and the Terms of Trade’, Econometrica, Vol. 24 (1956).Google Scholar
  37. Kemp, M. C., Three Topics in the Theory of International Trade, Series in International Economics (Amsterdam: North Holland Co., 1976).Google Scholar
  38. Kennedy, C., ‘Induced Bias in Innovation and the Theory of Distribution’, Economic Journal (1964).Google Scholar
  39. Kravis, I., ‘Availability and Other Influences on the Commodity Composition of Trade’, Journal of Political Economy (April, 1956).Google Scholar
  40. Lancaster, K. J., ‘A Theory of Trade Between Identical Economies’, Mimeographed (1975).Google Scholar
  41. Leontief, W., ‘Domestic Production and Foreign Trade: The American Capital Position Re-examined’, Economia Internazionale (1954).Google Scholar
  42. Linder, S., An Essay on Trade and Transformation (New York: John Wiley and Sons, 1961).Google Scholar
  43. Marshall, A., Principles of Economics, 8th Edition (London: Macmillan, 1962).Google Scholar
  44. Mayer, W., ‘Short-run and Long-run Equilibrium for a Small, Open Economy’, Journal of Political Economy (Sept./Oct., 1974).Google Scholar
  45. Mayer, W., ‘The National Defense Tariff Argument Reconsidered’, Mimeograhed (1975).Google Scholar
  46. McCulloch, R. and Yellen, J. (1975), ‘Consequences of a Tax on the Brain Drain for Unemployment and Income Equality in the Less Developed Countries’, Journal of Development Economics; reprinted in Bhagwati (1976).Google Scholar
  47. Mill, J. S., Principles of Political Economy (London: Longmans Green and Co., 1848).Google Scholar
  48. Mussa, M., ‘Tariffs and the Distribution of Income: The Importance of Factor Specificity, and Intensity in the Short and Long Run’, Journal of Political Economy (1974).Google Scholar
  49. Ohlin, B., Interregional and International Trade (Cambridge: Harvard University Press, 1933).Google Scholar
  50. Oniki, H. and Uzawa, H., ‘Patterns of Trade and Investment in a Dynamic Model of International Trade’, Review of Economic Studies (1965).Google Scholar
  51. Reidel, J., ‘Tariff Concessions in the Kennedy Round and the Structure of Protection in West Germany: An Econometric Assessment’, Mimeographed (1976).Google Scholar
  52. Rodriguez, C., ‘Brain Drain and Economic Growth: A Dynamic Model’, Journal of Development Economics; reprinted in Bhagwati (1976).Google Scholar
  53. Samuelson, P. A., ‘A Theory of Induced Innovation Along Kennedy-Weizsacker Lines,’ Review of Economics and Statistics (1965).Google Scholar
  54. Spence, A. M., Market Signalling: Informational Transfer in Hiring and Related Screening Processes (Cambridge: Harvard University Press, 1974).Google Scholar
  55. Srinivasan, T. N. and Bhagwati, J., ‘Alternative Policy Rankings in a Large, Open Economy with Sector-Specific, Minimum Wages’, Journal of Economic Theory (1976).Google Scholar
  56. Sunkel, O., ‘Latin American Underdevelopment in the Year 2000’, in J. Bhagwati (ed.), Economics and World Order (New York: Macmillan, 1972).Google Scholar
  57. Weizsäcker, C. von, ‘Notes on Endogenous Change of Tastes’, Journal of Economic Theory, Vol. 3 (1971).Google Scholar

Copyright information

© The Nobel Foundation 1977

Authors and Affiliations

  • Jagdish N. Bhagwati

There are no affiliations available

Personalised recommendations