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Mixed Ownership, Unemployment, and Welfare for a Developing Economy

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  • Hamid Beladi
  • Chi-Chur Chao

Abstract

This paper considers the employment and welfare effects of mixed ownership via partial privatization of state-owned enterprises for a developing economy. An increase in the private ownership lowers the production and, hence, worsens urban unemployment in the short run. However, in the long run, capital moves to the rural region, alleviating the problem of urban unemployment. The employment effect can have a positive contribution to social welfare in the long run. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.

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  • Hamid Beladi & Chi-Chur Chao, 2006. "Mixed Ownership, Unemployment, and Welfare for a Developing Economy," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 604-611, November.
  • Handle: RePEc:bla:rdevec:v:10:y:2006:i:4:p:604-611
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    References listed on IDEAS

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    7. Devarajan, Shantayanan & de Melo, Jaime, 1990. "Membership in the CFA zone : Odyssean journey or Trojan horse?," Policy Research Working Paper Series 482, The World Bank.
    8. Bernard Gauthier & Isidro Soloaga & James Tybout, 2002. "A Firm's-Eye View of Commercial Policy and Fiscal Reforms in Cameroon," World Bank Economic Review, World Bank Group, vol. 16(3), pages 449-472, December.
    9. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, December.
    10. Devarajan, Shantayanan & de Melo, Jaime, 1987. "Evaluating participation in African monetary unions: A statistical analysis of the CFA Zones," World Development, Elsevier, vol. 15(4), pages 483-496, April.
    11. Tybout, James, et al, 1997. "Firm-Level Responses to the CFA Devaluation in Cameroon," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(1), pages 3-34, March.
    12. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, pages 773-785.
    13. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
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    Cited by:

    1. Leonard Wang & Ya-Chin Wang & Lihong Zhao, 2009. "Managerial delegation and partial privatization in general equilibrium with sector-specific unemployment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), pages 393-399.
    2. Chao, Chi-Chur & Nabin, Munirul & Nguyen, Xuan & Sgro, Pasquale M., 2016. "Wage inequality and welfare in developing countries: Privatization and reforms in the short and long run," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 474-483.
    3. Leonard F.S. Wang & Ya-Chin Wang & Lihong Zhao, 2012. "The incidence of environmental regulation in a developing economy with sector-specific unemployment: a note," Economics and Business Letters, Oviedo University Press, vol. 1(1), pages 3-11.
    4. Juan Bárcena-Ruiz & María Garzón, 2010. "Endogenous timing in a mixed oligopoly with semipublic firms," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 9(2), pages 97-113, August.
    5. Tohru Naito, 2012. "Urban-rural migration, unemployment, and privatization: a synthesis of Harris-Todaro model and a mixed duopoly," Letters in Spatial and Resource Sciences, Springer, pages 85-94.
    6. Arijit Mukherjee & Kullapat Suetrong, 2013. "Privatization, Incentive Delegation and Foreign Direct Investment," Open Economies Review, Springer, pages 657-676.
    7. Pi Jiancai & Yin Jun, 2016. "Privatization, Unemployment, and Welfare in the Harris-Todaro Model with a Mixed Duopoly," The B.E. Journal of Economic Analysis & Policy, De Gruyter, pages 1-12.

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