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Liberalization and "Jobless Growth" in a Developing Economy: some Extended Results

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  • Soumyatana Mukherjee
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    Abstract

    This paper, in terms of a three-sector mobile capital version of Harris-Todaro type general equilibrium model of rural-urban migration with agricultural dualism and a non-traded intermediate input, tries to theoretically explain why a developing country may experience a ‘jobless growth’ during liberalised regime as suggested by empirical evidences. I have considered impacts of trade liberalization (captured by a tariff-reform in the protected importcompeting sector) and liberalization of labour laws (captured by a reduction in the bargaining strength of the labour unions). These findings are particularly interesting for their contradiction to the predictions of standard Harris-Todaro model.

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    File URL: http://www.nottingham.ac.uk/gep/documents/papers/2013/2013-07.pdf
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    Bibliographic Info

    Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 2013-07.

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    Date of creation: 2013
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    Handle: RePEc:not:notgep:13/07

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    Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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    Related research

    Keywords: Trade Liberalization; Labour Market Reform; Agricultural Dualism; Jobless Growth; Non-traded Intermediate Input; Urban Unemployment.;

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    1. Sarbajit Chaudhuri, 2005. "Foreign Capital, Welfare And Urban Unemployment In The Presence Of Agricultural Dualism," International Trade 0510010, EconWPA.
    2. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
    3. Mukherjee, Soumyatanu, 2012. "Revisiting the Apparent Paradox: Foreign Capital Inflow, Welfare Amelioration and ‘Jobless Growth’ with Agricultural Dualism and Non-traded Intermediate Input," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 123-133.
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