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Environment and the Harris and Todaro Paradoxes

In: International Trade and Economic Dynamics

Author

Listed:
  • Makoto Tawada

    (Nagoya University)

  • Azusa Nakamura

    (Gifu Shotoku Gakuen University, 1-38)

Abstract

There are two well-known paradoxical results in the Harris and Todaro model. One is that subsidization policies for the manufacturing sector are not effective, but those for the agricultural sector are effective for reducing urban unemployment. The other is that unemployment expands as a result of an increase in the capital endowment, but contracts as a result of an increase in the labor endowment. In the present analysis, environmental elements are introduced into the model, and we show that a decrease in the discharge rate of pollution may enhance urban unemployment, while the paradoxical results that occur with a change in the factor endowment disappear.

Suggested Citation

  • Makoto Tawada & Azusa Nakamura, 2009. "Environment and the Harris and Todaro Paradoxes," Springer Books, in: Takashi Kamihigashi & Laixun Zhao (ed.), International Trade and Economic Dynamics, pages 87-99, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-78676-4_10
    DOI: 10.1007/978-3-540-78676-4_10
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    Citations

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    Cited by:

    1. Pengqing Zhang, 2019. "Skill formation, environmental pollution, and wage inequality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 405-424, April.
    2. Azusa Nakamura, 2020. "Environmental disparities in an urban area, rural–urban migration, and urban unemployment," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 463-477, June.
    3. Azusa Nakamura, 2018. "Pollution from consumption and urban unemployment in a dual economy," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 211-226, April.

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