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Free trade zones with Harris-Todaro unemployment A note on Young-Miyagiwa
T D CHAUDHURI, S ADHIKARI
Published in -
1993
Volume: 41
   
Issue: 1
Pages: 157 - 162
Abstract
This paper attempts to generalise the Young-Miyagiwa results for an economy with a free trade zone and Harris-Todaro unemployment by incorporating intersectoral mobility of domestic capital and an upward sloping supply function of foreign capital. Our analysis reveals, that under reasonable assumptions, creating a free trade zone may lead to a loss in national welfare. Further, there may arise a conflict between the twin objectives of increasing employment and increasing national welfare. © 1993.
About the journal
JournalJournal of Development Economics
Publisher-
ISSN0304-3878