Mixed Ownership, Unemployment, and Welfare for a Developing Economy
University of Texas at San Antonio - College of Business - Department of Economics
Chi Chur Chao
Chinese University of Hong Kong - Department of Economics
Review of Development Economics, Vol. 10, No. 4, pp. 604-611, November 2006
This paper considers the employment and welfare effects of mixed ownership via partial privatization of state-owned enterprises for a developing economy. An increase in the private ownership lowers the production and, hence, worsens urban unemployment in the short run. However, in the long run, capital moves to the rural region, alleviating the problem of urban unemployment. The employment effect can have a positive contribution to social welfare in the long run.
Number of Pages in PDF File: 8Accepted Paper Series
Date posted: October 19, 2006
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