Sub -optimal Tariff Policy and Gains from Trade for LDCs with Urban Unemployment
In this paper we examine the issue of gains from trade in a setting which admits urban unemployment and a variety of urban, labour market conditions. In addition to the conventional criterion, we also consider the case when the size of the urban unemployed is the sole determinant of welfare. The results lean heavily on factor market stability and are sensitive to the commodity being imported and to the assumption of intersectoral mobility of capital.
Volume (Year): 21 (1982)
Issue (Month): 2 ()
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- Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969.
"Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results,"
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- M. Ali Khan, 1982. "Social Opportunity Costs and Immiserizing Growth: Some Observations on the Long Run Versus the Short," The Quarterly Journal of Economics, Oxford University Press, vol. 97(2), pages 353-362.
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