Authors
Cagin Keskin
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Abstract
The ICT (Information and Communication Technologies) revolution has been a principal driver of increased intangible investment and the accumulation of intangible assets. However, this development did not occur in isolation: it coincided with an expanding supply of skilled labor and an acceleration of globalization. This paper integrates models of skill-biased technological change and international trade to examine how globalization and rising skilled-labor availability affect intangible investment and reshape firm dynamics. I show that the interaction between ICT diffusion, trade liberalization, and skill supply reallocates resources toward intangible-intensive activities, amplifies firm-level heterogeneity, and changes entry, exit, and growth patterns. The results highlight channels through which global integration and skill accumulation jointly drive structural transformation and productivity divergence.
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