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

Author

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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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    File URL: http://www.pide.org.pk/pdf/PDR/1982/Volume2/105-126.pdf
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    References listed on IDEAS

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    2. Bhagwati, Jagdish N & Srinivasan, T N, 1974. "On Reanalyzing the Harris-Todaro Model: Policy Rankings in the Case of Sector-Specific Sticky Wages," American Economic Review, American Economic Association, vol. 64(3), pages 502-508, June.
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    5. 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.
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    8. M. Ali Khan, 1982. "Social Opportunity Costs and Immiserizing Growth: Some Observations on the Long Run Versus the Short," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(2), pages 353-362.
    9. Jagdish Bhagwati & Murray C. Kemp, 1969. "Ranking of Tariffs under Monopoly Power in Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(2), pages 330-335.
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    11. J. Bhagwati & T. N. Srinivasan, 1973. "The Ranking of Policy Interventions Under Factor Market Imperfections: The Case of Sector-Specific Sticky Wages and Unemployment," Working papers 100, Massachusetts Institute of Technology (MIT), Department of Economics.
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    Cited by:

    1. M. Ali Khan, 1992. "On Measuring the Social Opportunity Cost of Labour in the Presence of Tariffs and an Informal Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 535-564.
    2. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    3. Titas Kumar Bandopadhyay, 2007. "Trade Reform, Capital Mobility, and Efficiency Wage in a Harris-Todaro Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 163-174.
    4. Autsawin Suttiwichienchot & Nattapong Puttanapong, 2014. "A Study on Internal Labor Movement and Policy Multiplier in Thailand," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(3), pages 57-68.

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