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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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    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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