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FDI in agricultural land, welfare and unemployment in a developing economy

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  • Chaudhuri, Sarbajit
  • Banerjee, Dibyendu

Abstract

The paper purports to examine the consequences of foreign direct investment (FDI) in agricultural land in a developing economy using a three-sector general equilibrium model with simultaneous existence of unemployment of both skilled and unskilled labour. The analysis finds that FDI in agriculture does not only improve national welfare unequivocally but also mitigates the unemployment problem of both types of labour. The paper theoretically justifies the desirability of flow of FDI in agriculture in the developing economies.

Suggested Citation

  • Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2010. "FDI in agricultural land, welfare and unemployment in a developing economy," Research in Economics, Elsevier, vol. 64(4), pages 229-239, December.
  • Handle: RePEc:eee:reecon:v:64:y:2010:i:4:p:229-239
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    14. Sarbajit Chaudhuri, 2005. "Labour Market Distortion, Technology Transfer And Gainful Effects Of Foreign Capital," Manchester School, University of Manchester, vol. 73(2), pages 214-227, March.
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    3. Hongxing Yao & Mohammed Ismail Alhussam & Omar Abu Risha & Bilal Ahmed Memon, 2020. "Analyzing the Relationship between Agricultural FDI and Food Security: Evidence from Belt and Road Countries," Sustainability, MDPI, Open Access Journal, vol. 12(7), pages 1-20, April.
    4. Das Minakshee, 2020. "Does Foreign Direct Investment (FDI) Promote Socioeconomic Development? Evidence from Advanced, Emerging-market, Developing and Transition Economies," Man and the Economy, De Gruyter, vol. 7(1), pages 1-25, June.
    5. Sarbajit Chaudhuri, 2016. "Trade Unionism and Welfare Consequences of Trade and Investment Reforms in A Developing Economy," Metroeconomica, Wiley Blackwell, vol. 67(1), pages 152-171, February.
    6. Songping Zhu & Azhong Ye, 2018. "Does Foreign Direct Investment Improve Inclusive Green Growth? Empirical Evidence from China," Economies, MDPI, Open Access Journal, vol. 6(3), pages 1-16, August.
    7. John Nkwoma Inekwe, 2013. "FDI, Employment and Economic Growth in Nigeria," African Development Review, African Development Bank, vol. 25(4), pages 421-433, December.
    8. Fredrick Ikpesu & Abraham Emmanuel Okpe, 2019. "Capital inflows, exchange rate and agricultural output in Nigeria," Future Business Journal, Springer, vol. 5(1), pages 1-8, December.
    9. David Sedik & Fujin Yi & Richard T. Gudaj, 2020. "Implications of Chinese Farmers in the Russian Far East," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(5), pages 1615-1622, November.
    10. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.
    11. Furqan Sikandar & Vasilii Erokhin & Hongshu Wang & Shafiqur Rehman & Anna Ivolga, 2021. "The Impact of Foreign Capital Inflows on Agriculture Development and Poverty Reduction: Panel Data Analysis for Developing Countries," Sustainability, MDPI, Open Access Journal, vol. 13(6), pages 1-22, March.
    12. Chaudhuri, Sarbajit, 2011. "Labor market reform and incidence of child labor in a developing economy," Economic Modelling, Elsevier, vol. 28(4), pages 1923-1930, July.
    13. Pi, Jiancai & Zhang, Pengqing, 2018. "Skill-biased technological change and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 347-362.
    14. Antoci, Angelo & Borghesi, Simone & Russu, Paolo & Ticci, Elisa, 2015. "Foreign direct investments, environmental externalities and capital segmentation in a rural economy," Ecological Economics, Elsevier, vol. 116(C), pages 341-353.
    15. Abdulmohsen Alfalih, Abdullah & Bel Hadj, Tarek, 2021. "Asymmetric effects of foreign direct investment on employment in an oil producing country: Do human capital, institutions and oil rents matter?," Resources Policy, Elsevier, vol. 70(C).
    16. Fujin Yi & Richard T. Gudaj & Valeria Arefieva & Renata Yanbykh & Svetlana Mishchuk & Tatiana A. Potenko & Jiayi Zhou & Ivan Zuenko, 2020. "Sino‐Russian Cooperation on Soybean Development in the Russian Far East," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(5), pages 1553-1586, November.
    17. Sarbajit Chaudhuri & Krishnendu Ghosh Dastidar, 2014. "Corruption, Efficiency Wage and Union Leadership," Pacific Economic Review, Wiley Blackwell, vol. 19(5), pages 559-576, December.
    18. Donggul Choi, 2018. "“Land Grab†or Development Opportunity? The Effect of Transnational Farmland Investments on the Ghanaian Economy," The Developing Economies, Institute of Developing Economies, vol. 56(1), pages 3-34, March.
    19. Hao Wang & Jan Fidrmuc & Qi Luo, 2020. "A Spatial Analysis of Inward FDI and Rural-Urban Wage Inequality: Evidence from China," CESifo Working Paper Series 8258, CESifo.
    20. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.
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    More about this item

    Keywords

    FDI in agricultural land National welfare Unemployment Fair wage hypothesis Skilled labour Unskilled labour General equilibrium;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • F10 - International Economics - - Trade - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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