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Immiserizing Growth in a Developing Economy Export Enclave

Author

Listed:
  • Nitesh Saha

    (Department of Economics, Utah State University, U.S.A.)

  • John Gilbert

    (Department of Economics, Utah State University, U.S.A.)

Abstract

Using a general equilibrium model of a protected developing economy, we demonstrate that imperfect labor mobility may eliminate the possibility of immiserizing growth from foreign investment in an export enclave by allowing job creation to countervail losses in tariff revenue.

Suggested Citation

  • Nitesh Saha & John Gilbert, 2004. "Immiserizing Growth in a Developing Economy Export Enclave," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 217-224, December.
    • Handle: RePEc:ijb:journl:v:3:y:2004:i:3:p:217-224
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    References listed on IDEAS

    as
    1. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-782, July.
    2. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    3. Marjit, Sugata & Broll, Udo & Mitra, Sandip, 1997. "Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 101-106, February.
    4. Dehejia, Vivek H. & Weichenrieder, Alfons J., 2001. "Tariff jumping foreign investment and capital taxation," Journal of International Economics, Elsevier, vol. 53(1), pages 223-230, February.
    5. Ge, Wei, 1999. "Special Economic Zones and the Opening of the Chinese Economy: Some Lessons for Economic Liberalization," World Development, Elsevier, vol. 27(7), pages 1267-1285, July.
    6. Zhao, Yaohui, 2001. "Foreign direct investment and relative wages: The case of China," China Economic Review, Elsevier, vol. 12(1), pages 40-57.
    7. Xie Wei, 2000. "Acquisition Of Technological Capability Through Special Economic Zones (Sezs): The Case Of Shenzhen Sez," Industry and Innovation, Taylor & Francis Journals, vol. 7(2), pages 199-221.
    8. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
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    Cited by:

    1. Ratbek Dzhumashev & Jaai Parasnis, 2011. "Taxation and Migration: Policies to Manage a Resource Boom," Monash Economics Working Papers 33-11, Monash University, Department of Economics.
    2. Masudul Alam Choudhury & Mohammad Zakir Hossain & Mohammad Shahadat Hossain, 2011. "Estimating an Ethical Index of Human Wellbeing," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 375-409, July-Dece.

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    More about this item

    Keywords

    export enclaves; protection; immiserizing growth;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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