Foreign Investment, Urban Unemployment, and Informal Sector
AbstractIn this paper we extend the Harris-Todaro model to include an urban informal sector. The effects of exogenous inflow of foreign capital on outputs, unemployment and welfare are examined in the model where the product of the informal sector is used as an industrial input in the urban formal sector. We also analyze the implications of the capital inflow for income distribution.
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Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 20 (2005)
Issue (Month): ()
Harris-Todaro model; Foreign investment; Welfare;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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- M. Ali Khan, 2007.
"The Harris-Todaro Hypothesis,"
Labor Economics Working Papers
22206, East Asian Bureau of Economic Research.
- Titas Kumar Bandopadhyay, 2007. "Trade Reform, Capital Mobility, and Efficiency Wage in a Harris-Todaro Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 163-174.
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