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Special Economic Zones and Agriculture with Increasing Returns

Author

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  • Mukherjee, Soumyatanu

Abstract

This paper has made an attempt to show that in a developing economy, agriculture and Special Economic Zones (SEZ) can go simultaneously without affecting one another if appropriate subsidy policy is designed by the government. We have considered increasing returns brought about by external economies of scale in the SEZ-led industrial sector with the help of Dixit-Stiglitz (1977) type of production function where resource used to produce each variety of the SEZ-good is itself produced using constant returns to scale (CRS) technology and CRS is also present in the agricultural sector.

Suggested Citation

  • Mukherjee, Soumyatanu, 2011. "Special Economic Zones and Agriculture with Increasing Returns," MPRA Paper 33785, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33785
    as

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    File URL: https://mpra.ub.uni-muenchen.de/33785/2/MPRA_paper_33785.pdf
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    References listed on IDEAS

    as
    1. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    2. Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Formation of SEZ, Agricultural Productivity and Urban Unemployment," MPRA Paper 5324, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Special Economic Zones; Increasing Returns; External Economies of Scale; Constant Returns to Scale; Dixit-Stiglitz type Production Function;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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