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A General Equilibrium Skill Acquisitions Model Of Development For Lesotho

  • Mamit Deme

    (Middle Tennessee State University)

  • David Franck

    ()

    (Francis Marion University)

  • Nadeem Naqvi

    (Middle Tennessee State University)

Dual economy, large unemployment, a fixed number of skilled workers, perfect capital mobility, migrant labor force working in South African gold mines, and a cycle of poverty characterize Lesotho. This paper develops a general equilibrium model for Lesotho specifying these absorbing economic characteristics. We are particularly interested in constructing a rising step skill acquisition function, which shows that small infusions of human-capital investment would not pull the economy out of its poverty trap, but a large infusion would.

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Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 30 (2005)
Issue (Month): 1 (June)
Pages: 15-29

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Handle: RePEc:jed:journl:v:30:y:2005:i:1:p:15-29
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  1. Upadhyay, Mukti P, 1994. "Accumulation of Human Capital in LDCs in the Presence of Unemployment," Economica, London School of Economics and Political Science, vol. 61(243), pages 355-78, August.
  2. Vandana Chandra & Nadeem Naqvi, 1997. "Protection and the Shadow Price of Foreign Exchange with Increasing Returns and International Capital Mobility," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 959-67, November.
  3. Neary, J Peter & Ruane, Frances, 1985. "International Capital Mobility, Shadow Prices and the Cost of Protection," CEPR Discussion Papers 58, C.E.P.R. Discussion Papers.
  4. Deaton, A. & Case, A., 1988. "Analysis Of Household Expenditures," Papers 28, World Bank - Living Standards Measurement.
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