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Foreign Enclaves, Informal Sector And Urban Unemployment-A Theoretical Analysis

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  • Titas Bandopadhyay

    (Bagnan College)

Abstract

:- We consider a small open Harris-Todaro economy with a rural foreign enclave and urban informal sector. We introduce consumption- efficiency relation to explain the simultaneous existence of informal sector and urban unemployment. Different types of immobility and mobility of capital are assumed in different sections of this paper. We also analyse the effects of expansion of foreign enclave on urban unemployment and on domestic factor income. In many cases, we get the results opposite to that obtained in the young-Miyagiwa model.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0511006.

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Date of creation: 05 Nov 2005
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Handle: RePEc:wpa:wuwpge:0511006

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Keywords: FOREIGN-ENCLAVES; INFORMAL SECTOR; URBAN UNEMPLOYMENT;

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