Formation of SEZ, Agricultural Productivity and Urban Unemployment
AbstractFormation of SEZ using agricultural land to promote industrialization has recently been one of most controversial policy issues in many developing economies including India. This paper critically theoretically evaluates the consequences of this policy in terms of a three-sector Harris-Todaro type general equilibrium model reasonable for a developing economy. It finds that agriculture and SEZ can grow simultaneously provided the government spends more than a critical amount on irrigation projects and other infrastructural development designed for improving the efficiency of land. Agricultural wage and aggregate employment in the economy may also improve.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5324.
Date of creation: 11 Oct 2007
Date of revision:
Special economic zone; fiscal concessions; agricultural productivity; rural wage; urban unemployment;
Find related papers by JEL classification:
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-10-20 (Agricultural Economics)
- NEP-ALL-2007-10-20 (All new papers)
- NEP-CWA-2007-10-20 (Central & Western Asia)
- NEP-EFF-2007-10-20 (Efficiency & Productivity)
- NEP-GEO-2007-10-20 (Economic Geography)
- NEP-LAB-2007-10-20 (Labour 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.:
- Ke Li & Jan Whitwell & Shuntian Yao, 2005. "A Growth Model For China'S Special Economic Zone," Pacific Economic Review, Wiley Blackwell, Wiley Blackwell, vol. 10(4), pages 439-449, December.
- Mukherjee, Soumyatanu, 2011. "Special Economic Zones and Agriculture with Increasing Returns," MPRA Paper 33785, University Library of Munich, Germany.
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