Ethnic diversity is increasing in most advanced countries, driven mostly by sharp increases in immigration. In the long run immigration and diversity are likely to have important cultural, economic, fiscal, and developmental benefits. In the short run, however, immigration and ethnic diversity tend to reduce social solidarity and social capital. New evidence from the US suggests that in ethnically diverse neighbourhoods residents of all races tend to ‘hunker down’. Trust (even of one's own race) is lower, altruism and community cooperation rarer, friends fewer. In the long run, however, successful immigrant societies have overcome such fragmentation by creating new, cross-cutting forms of social solidarity and more encompassing identities. Illustrations of becoming comfortable with diversity are drawn from the US military, religious institutions, and earlier waves of American immigration.

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E Pluribus Unum: Diversity and Community in the Twenty‐first Century The 2006 Johan Skytte Prize Lecture

This paper presents a theoretical analysis of the 'Dutch Disease': the phenomenon whereby a boom in one traded goods sector squeezes porfitability in other traded goods sectors, both by directly bi ...

/pdf/booming-sector-and-de-industrialisation-in-a-small-open-exm5fa1nzq.pdf

Booming Sector and De-Industrialisation in a Small Open Economy

This study focuses on the role of wages and rents in allocating workers to locations with various quantities of amenities. The theory demonstrates that if the amenity is also productive, then the sign of the wage gradient is unclear while the rent gradient is positive. The theory is extended to include the housing market and nontraded goods. These extensions require little modification of the conclusion. The empirical work on wages shows that the regional wage differences can be explained largely by these local attributes. With the use of site price data, implicit prices are estimated and quality of life rankings for the cities are computed.

http://unionstats.gsu.edu/9220/Roback(1982)_JPE_Wages,%20Rents,%20and%20the%20Quality%20of%20Life.pdf

Wages, Rents, and the Quality of Life

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr72.pdf

The nature and growth of vertical specialization in world trade

Do countries with lower policy-induced barriers to international trade grow faster, once other relevant country characteristics are controlled for? There exists a large empirical literature providing an affirmative answer to this question. We argue that methodological problems with the empirical strategies employed in this literature leave the results open to diverse interpretations. In many cases, the indicators of openness used by researchers are poor measures of trade barriers or are highly correlated with other sources of bad economic performance. In other cases, the methods used to ascertain the link between trade policy and growth have serious shortcomings. Papers that we review include those by Dollar (1992), Ben-David (1993), Sachs and Warner (1995), Edwards (1998), and Frankel and Romer (1999). We find little evidence that open trade policies-in the sense of lower tariff and nontariff barriers to trade-are significantly associated with economic growth.

Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence

The following sections are included:IntroductionThe ModelThe Equations of ChangeThe Magnification EffectThe Extended Model: Demand EndogenousThe Aggregate Elasticity of SubstitutionConvergence to Balanced GrowthSavings BehaviorThe Analysis of Technological ChangeReferences

https://www.jstor.org/stable/pdfplus/1829883.pdf

The Structure of Simple General Equilibrium Models

IN Trade, balance of payments and growth ... / edited by Jagdish N. Bhagwati, Ronald W. Jones, Robert A. Mundell [and] Jaroslav Vanek, pp. 3-21 ; Scanned material.

A Three-Factor Model in Theory, Trade and History

The following sections are included:IntroductionServices in the Process of Expansion and FragmentationInternational Markets and the Production ProcessPrice Changes and the Role of Services in TradeComparisons with Existing ModelsConcluding RemarksReferences

The role of services in production and international trade

The role of services in production and international trade: a theoretical framework

Chapter 3 in: Arndt, S. W., & Kierzkowski, H. (2001). Fragmentation: New production patterns in the world economy. Oxford: Oxford University Press.

/pdf/a-framework-for-fragmentation-52df2h49g0.pdf

Ronald W. Jones

Papers

The Structure of Simple General Equilibrium Models

A Three-Factor Model in Theory, Trade and History

The role of services in production and international trade

The role of services in production and international trade: a theoretical framework

A Framework For Fragmentation