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Imperfect Labor Mobility and Unemployment in LDCs: Reply

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  • Amar K. Parai
  • Hamid Beladi

Abstract

In a recent paper (Parai and Beladi 1997; PB hereafter), we have analyzed the implications of growth and trade policies for a small open economy facing imperfect labor mobility and unemployment of the Harris‐Todaro variety. We have used the Casas (1984) specification of the labor immobility phenomenon for a Harris‐Todaro type economy, and have shown that most of the results in Harris‐Todaro framework remain unaltered even under imperfect labor mobility, provided that the elasticity of labor mobility parameter exceeds a critical minimum value. On the optimal tariff issue, Gilbert and Mikic (1997; GM hereafter) find our results counterconventional. In GM's view, the nonconventional result in PB is due to our simplification of the labor mobility specification given by Casas. In this note, we offer our response to GM's comments.

Suggested Citation

  • Amar K. Parai & Hamid Beladi, 1998. "Imperfect Labor Mobility and Unemployment in LDCs: Reply," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 182-184, July.
    • Handle: RePEc:wly:soecon:v:65:y:1998:i:1:p:182-184
    DOI: 10.1002/j.2325-8012.1998.tb00138.x
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    References listed on IDEAS

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    1. 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.
    2. Parai, Amar K. & Batra, Raveendra N., 1987. "Customs union and unemployment in LDCs," Journal of Development Economics, Elsevier, vol. 26(2), pages 311-319, August.
    3. Amar K. Parai & Hamid Beladi, 1997. "Imperfect Labor Mobility and Unemployment in LDCs," Southern Economic Journal, John Wiley & Sons, vol. 64(1), pages 180-190, July.
    4. Batra, Raveendra N & Naqvi, Nadeem, 1987. "Urban Unemployment and the Gains from Trade," Economica, London School of Economics and Political Science, vol. 54(215), pages 381-395, August.
    5. Raveendra N. Batra, 1973. "Studies in the Pure Theory of International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01423-1.
    6. F. R. Casas, 1984. "Imperfect Factor Mobility: A Generalization and Synthesis of Two-Sector Models of International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 747-761, November.
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