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A General Equilibrium Skill Acquisitions Model Of Development For Lesotho

Author

Listed:
  • Mamit Deme

    (Middle Tennessee State University)

  • David Franck

    (Francis Marion University)

  • Nadeem Naqvi

    (Middle Tennessee State University)

Abstract

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.

Suggested Citation

  • Mamit Deme & David Franck & Nadeem Naqvi, 2005. "A General Equilibrium Skill Acquisitions Model Of Development For Lesotho," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 15-29, June.
    • Handle: RePEc:jed:journl:v:30:y:2005:i:1:p:15-29
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    File URL: http://www.jed.or.kr/full-text/30-1/02_J667.PDF
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    References listed on IDEAS

    as
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    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 959-967, November.
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    6. MacLeod, W Bentley & Malcomson, James M & Gomme, Paul, 1994. "Labor Turnover and the Natural Rate of Unemployment: Efficiency Wage versus Frictional Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 276-315, April.
    7. Neary, Peter & Ruane, Frances P, 1988. "International Capital Mobility, Shadow Prices, and the Cost of Protection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 571-585, November.
    8. J. Peter Neary, 1985. "International Factor Mobility, Minimum Wage Rates, and Factor-Price Equalization: A Synthesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(3), pages 551-570.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marouani, Mohamed A. & Nilsson, Björn, 2016. "The labor market effects of skill-biased technological change in Malaysia," Economic Modelling, Elsevier, vol. 57(C), pages 55-75.
    2. repec:dau:papers:123456789/14733 is not listed on IDEAS
    3. Björn Nilsson & Mohamed Ali Marouani, 2015. "The Labor Market Effects of Skillbiased Technilogical Change in Malasya," Working Papers 20150006, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    4. Bobkova, Nina, 2010. "General equilibrium models on skill acquisition and economic development: some comments," MPRA Paper 26912, University Library of Munich, Germany.
    5. Bandopadhyay, Titas Kumar, 2006. "Skill acquisition and economic development — some comments," MPRA Paper 1759, University Library of Munich, Germany.

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    More about this item

    Keywords

    Lesotho; Skill Acquisition; Human Capital; Economic Development; General Equilibrium;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • F2 - International Economics - - International Factor Movements and International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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