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Immiserizing Growth in a Developing Economy Export Enclave

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  • Nitesh Saha

    (Department of Economics, Utah State University, U.S.A.)

  • John Gilbert

    (Department of Economics, Utah State University, U.S.A.)

Abstract

Using a general equilibrium model of a protected developing economy, we demonstrate that imperfect labor mobility may eliminate the possibility of immiserizing growth from foreign investment in an export enclave by allowing job creation to countervail losses in tariff revenue.

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Bibliographic Info

Article provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.

Volume (Year): 3 (2004)
Issue (Month): 3 (December)
Pages: 217-224

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Handle: RePEc:ijb:journl:v:3:y:2004:i:3:p:217-224

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Postal: 100 Wenhwa Road, Seatwen, Taichung
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Related research

Keywords: export enclaves; protection; immiserizing growth;

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References

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  1. Vivek Dehejia & Alfons Weichenrieder, 2000. "Tariff Jumping Foreign Investment and Capital Taxation," CESifo Working Paper Series 260, CESifo Group Munich.
  2. Marjit, Sugata & Broll, Udo & Mitra, Sandip, 1997. "Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 101-06, February.
  3. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
  4. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
  5. Zhao, Yaohui, 2001. "Foreign direct investment and relative wages: The case of China," China Economic Review, Elsevier, vol. 12(1), pages 40-57.
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Cited by:
  1. Ratbek Dzhumashev & Jaai Parasnis, 2011. "Taxation and Migration: Policies to Manage a Resource Boom," Development Research Unit Working Paper Series 33-11, Monash University, Department of Economics.

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