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Sub -optimal Tariff Policy and Gains from Trade for LDCs with Urban Unemployment

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  • M. ALI KHAN

    (Hopkins University, Baltimore, Maryland)

  • PO-SHENG LIN

    (Hopkins University, Baltimore, Maryland)

Abstract

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.

Suggested Citation

  • M. Ali Khan & Po-Sheng Lin, 1982. "Sub -optimal Tariff Policy and Gains from Trade for LDCs with Urban Unemployment," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 21(2), pages 105-126.
  • Handle: RePEc:pid:journl:v:21:y:1982:i:2:p:105-126
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    References listed on IDEAS

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    1. Murray C. Kemp, 1968. "Some Issues In The Analysis Of Trade Gains," Oxford Economic Papers, Oxford University Press, vol. 20(2), pages 149-161.
    2. Neary, J Peter, 1981. "On the Harris-Todaro Model with Intersectoral Capital Mobility," Economica, London School of Economics and Political Science, vol. 48(191), pages 219-234, August.
    3. Srinivasan, T. N. & Bhagwati, Jagdish, 1975. "Alternative policy rankings in a large, open economy with sector-specific, minimum wages," Journal of Economic Theory, Elsevier, vol. 11(3), pages 356-371, December.
    4. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
    5. Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1005-1010, Nov./Dec..
    6. 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.
    7. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-459, May-June.
    8. Jagdish Bhagwati & Murray C. Kemp, 1969. "Ranking of Tariffs under Monopoly Power in Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 83(2), pages 330-335.
    9. Kemp, Murray C & Nagishi, Takashi, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1011-1013, Nov./Dec..
    10. Brecher, Richard A., 1974. "Optimal commercial policy for a minimum-wage economy," Journal of International Economics, Elsevier, vol. 4(2), pages 139-149, May.
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