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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.

Suggested Citation

  • Titas Bandopadhyay, 2005. "Foreign Enclaves, Informal Sector And Urban Unemployment-A Theoretical Analysis," GE, Growth, Math methods 0511006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpge:0511006
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    More about this item

    Keywords

    FOREIGN-ENCLAVES; INFORMAL SECTOR; URBAN UNEMPLOYMENT;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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