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Migration and goods market rationing

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Author Info
Kinvi Logossah
Abstract

In this paper we analyze rural-to-urban migration in Less Developed Countries (LDCs). Our main assumption is that such migration can arise from the lack of available modern urban consumer goods in rural areas. Taking this hypothesis as our starting point, we use a dual economy model where the individuals? target is utility maximization and we show that although the Todaro paradox might hold, Harris and Todaro?s prescription to stop migration is not necessarily adequate. Our analysis thus reveals that an appropriate urban consumer goods supply policy in rural areas could stop migration and solve related urban unemployment problems. JEL classification: R23, D11, C62.

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Publisher Info
Article provided by De Boeck Université in its journal Revue d'économie du développement.

Volume (Year): 21 (2007)
Issue (Month): 5 ()
Pages: 85-108
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Handle: RePEc:cai:edddbu:edd_215_0085

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Related research
Keywords: lack of goods; migration; rural areas; urban areas; equilibrium; economic policy;

Find related papers by JEL classification:
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium

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This page was last updated on 2009-12-17.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.