Economics Dictionary of ArgumentsHome
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| Manpower policy: Manpower policy in economics involves government or organizational strategies to manage the workforce effectively. It includes education, training, labor market regulations, and employment programs aimed at optimizing labor supply, improving skills, and matching workers to jobs to support economic growth and reduce unemployment. See also Labour market, Scientific labour market._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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James Brander on Manpower Policy - Dictionary of Arguments
Krugman III 158 Manpower policy/Brander/Spencer/Ulph/Winters: high tech sector: The market for the output of this sector is the world market, of which the particular economy is only a very small part. Because of the fixed costs of R&D there are only a few major international firms competing in this market, so it is inherently imperfectly competitive. >Research and Development (R&D). However, because in R&D success breeds success, entry cannot prevent these major firms from enjoying supernormal profits or rents even after deduction of the costs of R&D. The simplest way of capturing this in our model is to operate with a fixed number of firms. Cantwell (1989a)(1) provides the most recent evidence and a good discussion of this persistence phenomenon. Taken together these assumptions mean that the model is essentially one in which countries are in competition with one another through their manpower and industrial policies to get as large a share of these rents from the international market as they can. >Manpower policy, >Industrial policy, >International trade, >Competition, >Progress, >Technical progress, >New trade theory. Brander and Spencer: This framework is essentially that used by Brander and Spencer (1983)(2) in their argument for support of R&D. VsSpencer, B./VsBrander, J.: As is well known, there are a number of objections to the Brander and Spencer analysis. Dixit and Grossman (1986)(3) show that it depends crucially on the assumption that scientific manpower is essentially in perfectly elastic supply to the high-tech sector. They show that if it is completely inelastic and immobile, then support to the high-tech sector has to be very carefully targeted to have a beneficial effect. While concerns over skill shortages are captured by the inelastic supply assumption, the “brain drain” phenomenon suggests that the immobility assumption is unrealistic. We show that if scientific manpower is mobile then, while support to any arbitrary high-tech industry could be damaging, a policy giving more general support to the high-tech sector as a whole will be beneficial. We extend this to consider the arguments for policy when it is science that is mobile, with companies setting up their R&D labs at centers where scientific manpower is concentrated. These arguments for support of high-tech industries are tested by allowing for the possibility of international spillovers (in which case it may pay to free- ride on the R&D of other countries), and by having research undertaken by internationally mobile scientists while development is performed by immobile engineers. >Free-rider problem. 1. Cantwell, J. 1989a. Technological innovation and multinational corporations. Oxford: Basil Blackwell. 2. Brander, J., and B. Spencer. 1983. International R&D rivalry and industrial strategy. Review of Economic Studies 50:707-22. 3. Dixit, A, and G. Grossman. 1986. Targeted export promotion with several oligopolistic industries. Journal of International Economics 21:233-49. David Ulph and L. Alan Winters. „Strategic Manpower Policy and International Trade.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Brander, James EconKrug I Paul Krugman Volkswirtschaftslehre Stuttgart 2017 EconKrug II Paul Krugman Robin Wells Microeconomics New York 2014 Krugman III Paul Krugman Alasdair Smith Empirical Studies of Strategic Trade Policy Chicago: The University of Chicago Press 1994 |
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