Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model
The aim of this paper is to analyze the impact of offshoring on employment in France. In economic analysis, is often associated the phenomenon of relocation to the problem of unemployment. Using a Computable General Equilibrium Model (CGEM), we simulate the relationship between offshoring to the CE...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2014-08-01
|
| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/872 |
| _version_ | 1797908351959433216 |
|---|---|
| author | Radouane Raouf Hicham Hafid |
| author_facet | Radouane Raouf Hicham Hafid |
| author_sort | Radouane Raouf |
| collection | DOAJ |
| description |
The aim of this paper is to analyze the impact of offshoring on employment in France. In economic analysis, is often associated the phenomenon of relocation to the problem of unemployment. Using a Computable General Equilibrium Model (CGEM), we simulate the relationship between offshoring to the CEECs and the rising inequality between skilled (TQ) and unskilled (TNQ) workers. In order to study this impact, we will initially talk about theoretical and empirical contributions explaining the relation “relocation-employment”. In a second step, we will develop a CGE model (the model is implemented in GAMS) to test the impact of offshoring to the CEECs on wage and unemployment rate for skilled and unskilled workers. The simulation results show that there is a negative effect of offshoring on the situation of TNQ in terms of wages and employment and a rather positive effect on TQ. This confirms the “Stolper-Samuelson” theorem.
Keywords: Relocation; FDI; Skilled and Unskilled workers; Inequality; Wage; CGEM.
JEL Classifications : F12 ; F16 ; F21
|
| first_indexed | 2024-04-10T10:51:22Z |
| format | Article |
| id | doaj.art-c3009002b8814822b5adccad7896ca67 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:51:22Z |
| publishDate | 2014-08-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-c3009002b8814822b5adccad7896ca672023-02-15T16:20:07ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-08-0144Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE ModelRadouane Raouf0Hicham Hafid1Mohammed V University, Rabat MoroccoMohammed V University, Rabat The aim of this paper is to analyze the impact of offshoring on employment in France. In economic analysis, is often associated the phenomenon of relocation to the problem of unemployment. Using a Computable General Equilibrium Model (CGEM), we simulate the relationship between offshoring to the CEECs and the rising inequality between skilled (TQ) and unskilled (TNQ) workers. In order to study this impact, we will initially talk about theoretical and empirical contributions explaining the relation “relocation-employment”. In a second step, we will develop a CGE model (the model is implemented in GAMS) to test the impact of offshoring to the CEECs on wage and unemployment rate for skilled and unskilled workers. The simulation results show that there is a negative effect of offshoring on the situation of TNQ in terms of wages and employment and a rather positive effect on TQ. This confirms the “Stolper-Samuelson” theorem. Keywords: Relocation; FDI; Skilled and Unskilled workers; Inequality; Wage; CGEM. JEL Classifications : F12 ; F16 ; F21 https://econjournals.com/index.php/ijefi/article/view/872 |
| spellingShingle | Radouane Raouf Hicham Hafid Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model International Journal of Economics and Financial Issues |
| title | Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model |
| title_full | Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model |
| title_fullStr | Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model |
| title_full_unstemmed | Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model |
| title_short | Relocation and Inequalities between Skilled and Unskilled in Northern Countries: Simulation Using a CGE Model |
| title_sort | relocation and inequalities between skilled and unskilled in northern countries simulation using a cge model |
| url | https://econjournals.com/index.php/ijefi/article/view/872 |
| work_keys_str_mv | AT radouaneraouf relocationandinequalitiesbetweenskilledandunskilledinnortherncountriessimulationusingacgemodel AT hichamhafid relocationandinequalitiesbetweenskilledandunskilledinnortherncountriessimulationusingacgemodel |