Revisiting the Apparent Paradox: Foreign Capital Inflow, Welfare Amelioration and ‘Jobless Growth’ with Agricultural Dualism and Non-traded Intermediate Input
AbstractIn order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris–Todaro (HT) model in the presence of protectionist policy; this paper, in terms of a three-sector HT type general equilibrium model with agricultural dualism where advanced agricultural sector produces a non-traded intermediate input using capital apart from labour and land for the agro-based industry in the urban sector, tries to show that foreign capital inflow may not only improve social welfare, but also lower the magnitude of urban unemployment of labour or may render the phenomenon of ‘jobless growth’.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33410.
Date of creation: 15 Sep 2011
Date of revision:
Foreign capital; Agricultural dualism; Non-traded intermediate input; Welfare; Urban unemployment; Jobless growth; Stolper-Samuelson theorem; General equilibrium model;
Other versions of this item:
- 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.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-09-22 (Agricultural Economics)
- NEP-ALL-2011-09-22 (All new papers)
- NEP-IUE-2011-09-22 (Informal & Underground Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Soumyatana Mukherjee, 2013. "Liberalization and "Jobless Growth" in a Developing Economy: some Extended Results," Discussion Papers 2013-07, University of Nottingham, GEP.
- Mukherjee, Soumyatanu, 2013. "Sector-specific foreign direct investment, factor market distortions and non-immiserising growth," MPRA Paper 52214, University Library of Munich, Germany.
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