Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation
This paper formulates a specific factor model of trade with skilled and unskilled workers as the specific and capital as the mobile factors. Production of goods is subject to intermediation and corruption. We then allow for international capital mobility and show that corruption as an activity may be squeezed out if the cost of intermediation is held fixed at any exogenously fixed level.
Volume (Year): 32 (2012)
Issue (Month): 3 ()
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- Kikuchi, Toru & Marjit, Sugata, 2011.
"Trade with time zone differences: factor market implications,"
30788, University Library of Munich, Germany.
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- Kikuchi, Toru & Marjit, Sugata & Mandal, Biswajit, 2011. "Trade with Time Zone Differences: Factor Market Implications," MPRA Paper 37931, University Library of Munich, Germany, revised 2012.
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- Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
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