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Would Recession Induce More Intermediation in the Corrupt Informal Sector?

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  • Mandal, Biswajit

Abstract

In this paper my endeavor is to give you an idea about the upshot of a recessionary phase on the intermediation activity which is required for the survival of the informal fragment of the society. Informal part of the economy covers a large chunk of the total economic activities in any stylized developing economy. Therefore it is imperative to check possible consequences of recession on this subdivision because intermediation also requires unskilled work force which need to be pulled out from the productive spectrum. In doing so I would be using the hybrid of standard Heckscher - Ohlin and Specific Factor general equilibrium models of trade. I would also strive to focus on the wage-inequality paradigm.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19930.

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Date of creation: 20 Dec 2009
Date of revision: 10 Jan 2010
Handle: RePEc:pra:mprapa:19930

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Keywords: International Trade; Corruption; Informal sector; General Equilibrium.;

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  1. Ronald Jones & Sugata Marjit, 2009. "Competitive trade models and real world features," Economic Theory, Springer, vol. 41(1), pages 163-174, October.
  2. Mandal, Biswajit, 2009. "Trade reform in a corrupt economy : A note," MPRA Paper 18811, University Library of Munich, Germany.
  3. Sugata Marjit & Biswajit Mandal, . "Corruption and Trade in General Equilibrium," Discussion Papers 08/15, University of Nottingham, GEP.
  4. Marjit, Sugata & Kar, Saibal & Chaudhuri, Sarbajit, 2011. "Recession in the skilled sector and implications for informal wage," Research in Economics, Elsevier, vol. 65(3), pages 158-163, September.
  5. Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
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