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Mobility of Capital and Health Sector:A Trade Theoretic Analysis

  • Chatterjee, Tonmoy
  • Gupta, Kausik

In this paper we formulate a three-sector general equilibrium model where two sectors produce final traded goods whereas a third sector produces a non-traded final good. We refer to the third sector as a non-traded final goods producing health sector. In such a set up we have shown that a movement from a regime of international health capital immobility to a regime of international health capital mobility may lead to an expansion of the health sector. Next we have considered a variant of the basic model and we have shown that the output of the health sector must go up in case of international health capital mobility. Finally in the variant of the model we have shown that a movement from a regime of international capital immobility to a regime of international capital mobility may lead to a contraction of the health sector and one of the sectors (either Agricultural or Manufacturing) vanishes.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48557.

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Date of creation: 17 Jul 2013
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Handle: RePEc:pra:mprapa:48557
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  1. Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
  2. Sarbajit Chaudhuri, 2005. "Foreign Capital, Welfare And Urban Unemployment In The Presence Of Agricultural Dualism," International Trade 0510010, EconWPA.
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  5. Grinols, Earl L, 1991. "Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare," Economica, London School of Economics and Political Science, vol. 58(229), pages 107-21, February.
  6. Marjit, Sugata & Kar, Saibal, 2009. "Emigration, Wage Inequality and Vanishing Sectors," MPRA Paper 19354, University Library of Munich, Germany.
  7. Sarbajit Chaudhuri, 2001. "Foreign Capital Inflow, Technology Transfer, and National Income," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(1), pages 49-56.
  8. Marjit, Sugata & Beladi, Hamid, 1996. "Protection and the gainful effects of foreign capital," Economics Letters, Elsevier, vol. 53(3), pages 311-316, December.
  9. Sarbajit Chaudhuri, 2003. "How and how far to liberalize a developing economy with informal sector and factor market distortions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(4), pages 403-428.
  10. Khan, M. Ali, 1980. "The Harris-Todaro hypothesis and the Heckscher-Ohlin-Samuelson trade model : A synthesis," Journal of International Economics, Elsevier, vol. 10(4), pages 527-547, November.
  11. Marjit, Sugata & Broll, Udo & Mitra, Sandip, 1997. "Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 101-06, February.
  12. Rupa Chanda, 2008. "Trade in Health Services," Working Papers id:1758, eSocialSciences.
  13. Gupta, Manash Ranjan, 1994. "Foreign capital, income inequality and welfare in a Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 45(2), pages 407-414, December.
  14. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2007. "Foreign Capital Inflow, Fiscal Policies And Incidence Of Child Labour In A Developing Economy," Manchester School, University of Manchester, vol. 75(1), pages 17-46, 01.
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