Credit Market Reform, Foreign Capital and Child Labour: A Theoretical Analysis

Working Paper No. 2002-5

24 Pages Posted: 27 Feb 2003

See all articles by Sarbajit Chaudhuri

Sarbajit Chaudhuri

University of Calcutta

Jayanta Kumar Dwibedi

Brahmmananda Keshab Chandra (B.K.C.) College - Department of Economics

Date Written: August 2002

Abstract

The paper is purported to explore the implications of a credit market reform policy and an overall economic expansion through inflows of foreign capital on the incidence of child labour using a three-sector general equilibrium model. A separate household sector producing child labour has been introduced for the purpose of analysis. It shows that policies to remove imperfection in the informal credit markets may be desirable to mitigate the child labour problem even in the absence of any schooling system and possibility of skill improvement. But, an overall economic expansion (for example, capital accumulation through inflows of foreign capital) may in fact be counterproductive and intensify the child labour problem. The effects of these two policies on national welfare have also been studied.

Keywords: Child labour, credit market reform, foreign capital inflow, general equilibrium, informal capital market

JEL Classification: F10, J10, J13, I28

Suggested Citation

Chaudhuri, Sarbajit and Dwibedi, Jayanta Kumar, Credit Market Reform, Foreign Capital and Child Labour: A Theoretical Analysis (August 2002). Working Paper No. 2002-5, Available at SSRN: https://ssrn.com/abstract=360961 or http://dx.doi.org/10.2139/ssrn.360961

Sarbajit Chaudhuri (Contact Author)

University of Calcutta ( email )

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HOME PAGE: http://econpapers.repec.org/RAS/pch11.htm

Jayanta Kumar Dwibedi

Brahmmananda Keshab Chandra (B.K.C.) College - Department of Economics ( email )

Kolkata 700 035 West Bengal
India
91-33-564-4950 (Phone)

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