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Inflow Of Foreign Capital And Trade Liberalization In A Model With An Informal Sector And Urban Unemployment

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Author Info

  • Sarbajit Chaudhuri
  • Shigemi Yabuuchi
  • Ujjaini Mukhopadhyay

Abstract

The paper has made an attempt to analyse the effects of liberalized trade and investment policies on welfare and open unemployment in a developing economy in terms of a three sector Harris-Todaro type general equilibrium model. Following empirical evidence it is assumed that there is wage rigidity in urban sectors, which leads to the simultaneous existence of open unemployment and an urban informal sector in the migration equilibrium. The paper deserves special attention for its interesting results which are completely opposite to those generated by the standard Harris-Todaro model. Copyright 2006 Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Pacific Economic Review.

Volume (Year): 11 (2006)
Issue (Month): 1 (02)
Pages: 87-103

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Handle: RePEc:bla:pacecr:v:11:y:2006:i:1:p:87-103

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Cited by:
  1. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2010. "FDI in agricultural land, welfare and unemployment in a developing economy," Research in Economics, Elsevier, vol. 64(4), pages 229-239, December.
  2. Chaudhuri, Sarbajit, 2014. "Foreign capital, non-traded goods and welfare in a developing economy in the presence of externalities," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 249-262.
  3. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
  4. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2006. "Economic Liberalization and Informal Wage in a Small Open Economy: Does Capital Mobility count?," MPRA Paper 1353, University Library of Munich, Germany.
  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. Asongu Simplice, 2013. "Liberalization and financial sector competition: a critical contribution to the empirics with an African assessment," Working Papers 13/031, African Governance and Development Institute..
  7. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 2011. "International factor mobility, informal interest rate and capital market imperfection: a general equilibrium analysis," MPRA Paper 32682, University Library of Munich, Germany.
  8. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2007. "Economic liberalization, capital mobility and informal wage in a small open economy: A theoretical analysis," Economic Modelling, Elsevier, vol. 24(6), pages 924-940, November.
  9. 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.
  10. Mukherjee, Soumyatanu & Zafar, Sameen, 2014. "Technological progress with segmented factor markets and welfare implications for the urban poor," MPRA Paper 55297, University Library of Munich, Germany.
  11. Chaudhuri, Sarbajit & Bandopadhyay, Titas Kumar, 2012. "Job-search and foreign capital inflow - a three sector general equilibrium analysis," MPRA Paper 38921, University Library of Munich, Germany.
  12. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.
  13. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2009. "Foreign Capital, National Welfare and Unemployment in a Fair Wage Model," MPRA Paper 18005, University Library of Munich, Germany.
  14. Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Foreign Capital and Skilled-unskilled Wage Inequality in a Developing Economy with Non-traded Goods," MPRA Paper 2645, University Library of Munich, Germany.
  15. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.

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