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Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy

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  • Sarbajit Chaudhuri
  • Jayanta Kumar Dwibedi

Abstract

This paper is an attempt to analyse the consequence of trade liberalization in agriculture in the developed countries on the incidence of child labour in a developing economy in terms of a three-sector general equilibrium model with informal sectors. Adult labour and child labour are substitutes for each other in the two informal sectors of the economy and are used together apart from capital in producing two exportable commodities. The interesting result that appears from the analysis is that agricultural trade liberalization in the developed countries may be effective in bringing down the incidence of child labour in the system. The paper substantiates the desirability of trade liberalization in agriculture in the developed nations from the perspective of the developing economies for reasons other than welfare improvement. Copyright Blackwell Publishers Ltd and the Board of Trustees of the Bulletin of Economic Research, 2006.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

Volume (Year): 58 (2006)
Issue (Month): 2 (04)
Pages: 129-150

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Handle: RePEc:bla:buecrs:v:58:y:2006:i:2:p:129-150

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  1. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  2. Sarbajit Chaudhuri & Ujjaini Mukhopadhyay, 2005. "Free Education Policy And Trade Liberalization: Consequences On Child And Adult Labour Markets In A Small Open Economy," Labor and Demography 0510018, EconWPA.
  3. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
  4. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  5. Basu, Kaushik & Tzannatos, Zafiris, 2003. "The Global Child Labor Problem: What Do We Know and What Can We Do?," Working Papers 03-06, Cornell University, Center for Analytic Economics.
  6. Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
  7. Gupta, Manash Ranjan, 2000. "Wage Determination of a Child Worker: A Theoretical Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(2), pages 219-28, June.
  8. Bhalotra, Sonia & Heady, Christopher, 2001. "Child farm labour : the wealth paradox," Social Protection Discussion Papers 24088, The World Bank.
  9. Eric V. Edmonds, 2007. "Child Labor," NBER Working Papers 12926, National Bureau of Economic Research, Inc.
  10. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  11. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  12. Hoekman, Bernard & Anderson, Kym, 1999. "Developing country agriculture and the new trade agenda," Policy Research Working Paper Series 2125, The World Bank.
  13. Sarbajit Chaudhuri & Manash Ranjan Gupta, 2005. "Child Labour And Trade Liberalization In A Developing Economy," Labor and Demography 0510017, EconWPA.
  14. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
  15. Ray, R., 1998. "Analysis of Child Labour in Peru and Pakistan: a Comparative Study," Papers 1998-05, Tasmania - Department of Economics.
  16. George Psacharopoulos & Harry Anthony Patrinos, 1997. "Family size, schooling and child labor in Peru - An empirical analysis," Journal of Population Economics, Springer, vol. 10(4), pages 387-405.
  17. Swaminathan, Madhura, 1998. "Economic growth and the persistence of child labor: Evidence from an Indian city," World Development, Elsevier, vol. 26(8), pages 1513-1528, August.
  18. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
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Citations

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Cited by:
  1. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2014. "Agricultural Subsidy Policies Fail to Deal with Child Labour under Agricultural Dualism: What could be the Alternative Policies?," MPRA Paper 55411, University Library of Munich, Germany.
  2. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 2013. "Endogenous Capital Market Imperfection, Informal Interest Rate Determination and International Factor mobility in a General Equilibrium Model," MPRA Paper 51157, University Library of Munich, Germany.
  3. Chaudhuri, Sarbajit & Roychowdhury, Somasree, 2014. "Economic Reforms and Gender-based Wage Inequality in the Presence of Factor Market Distortions," MPRA Paper 54111, University Library of Munich, Germany.
  4. Sarbajit Chaudhuri, 2005. "Incidence Of Child Labour, Free Education Policy And Economic Liberalization In A Developing Economy," Labor and Demography 0511010, EconWPA.
  5. Chaudhuri, Sarbajit, 2009. "Labour Market Reform and Incidence of Child Labour in a Developing Economy," MPRA Paper 19667, University Library of Munich, Germany.
  6. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 2014. "International factor mobility, informal interest rate and capital market imperfection: A general equilibrium analysis," Economic Modelling, Elsevier, vol. 37(C), pages 184-192.
  7. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
  8. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.

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