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File name: SSRN-id298500. ; Size: 77K
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Removal of Protectionism, Foreign Investment and Welfare in a Model of Informal Sector
Sarbajit Chaudhuri
University of Calcutta
Ujjaini Mukherjee
University of Calcutta - Department of Economics
Abstract:
The paper develops a three-sector general equilibrium model with two informal sectors with complete mobility of labour between these sectors and with a positive relationship between wage income and labour's efficiency to show that the results relating to foreign capital inflow and removal of protectionism may be counterintuitive to the conventional wisdom. The paper is also devoted to explain why some developing countries implement tariff reforms very slowly compared to others, even after formally choosing free trade as their development strategies, in a more general fashion than the existing tariff-jumping theory.
Number of Pages in PDF File: 21
JEL Classification: F10, F13, F21, O17
working papers series
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Date posted: January 27, 2002
Suggested CitationChaudhuri, Sarbajit and Mukherjee, Ujjaini, Removal of Protectionism, Foreign Investment and Welfare in a Model of Informal Sector. Available at SSRN: http://ssrn.com/abstract=298500 or http://dx.doi.org/10.2139/ssrn.298500
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