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Value Added per Worker, Capital Accumulation, and Technical Progress

Author

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  • HOON HlAN TECK

    (Economics and Statistics,National University of Singapore)

Abstract

Within the context of industrial restructuring, it is not uncQmmon to use terms ,such as 'higher value-added per worker', or 'low or high value added activities', and 'high technology' industries. The present note attempts to use the theoretical work in the field of international trade to sharpen our understanding of the relationships among the concepts of value added per worker, capital accumulation, and technical progress. We show that for a large country, capital accumulation raises the real value added per worker in both industries. With neutral technical progress occurring in the L-intensive industry, it is possible for the terms of trade effect to lead to a decline in real labour productivity.

Suggested Citation

  • HOON HlAN TECK, 1988. "Value Added per Worker, Capital Accumulation, and Technical Progress," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(2), pages 211-215.
    • Handle: RePEc:pid:journl:v:27:y:1988:i:2:p:211-215
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    File URL: http://www.pide.org.pk/pdf/PDR/1988/Volume2/211-215.pdf
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    Cited by:

    1. Muhammad Irfan, 2010. "A Review of the Labour Market Research at PIDE 1957-2009," PIDE Books, Pakistan Institute of Development Economics, number 2010:1 edited by Rashid Amjad & Aurangzeb A. Hashmi.

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