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The Welfare Implication of an Expansion of an Industrial Zone


  • Tetsu, Kazuhiro

    () (Shizuoka University)


The main objectives of this paper are to present a model introducing the idea of two isolated areas that have different economic features and to analyze the effects of an expansion of an industrial zone. In this model, we assume that there are two areas: one is under full employment, the other is suffering from urban unemployment. In such a two isolated area model, we show that the economic development of a rural area is attained at the cost of an urban area and that national income depends on the endowment of labor force in each area.

Suggested Citation

  • Tetsu, Kazuhiro, 2001. "The Welfare Implication of an Expansion of an Industrial Zone," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 369-378.
  • Handle: RePEc:ris:integr:0169

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    More about this item


    Industral Zone; Export Processing Zone; Two-area Model;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


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