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Formation of SEZ, Agricultural Productivity and Urban Unemployment

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Author Info
Chaudhuri, Sarbajit
Yabuuchi, Shigemi

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Abstract

Formation 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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File URL: http://mpra.ub.uni-muenchen.de/5324/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5324.

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Date of creation: 11 Oct 2007
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Handle: RePEc:pra:mprapa:5324

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Related research
Keywords: Special economic zone fiscal concessions agricultural productivity rural wage urban unemployment.

Find related papers by JEL classification:
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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  1. Ke Li & Jan Whitwell & Shuntian Yao, 2005. "A Growth Model For China'S Special Economic Zone," Pacific Economic Review, Blackwell Publishing, vol. 10(4), pages 439-449, December. [Downloadable!] (restricted)
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