IDEAS home Printed from https://ideas.repec.org/a/bla/jecrev/v52y2001i3p303-315.html
   My bibliography  Save this article

Employment Risk and Optimal Trade Policies

Author

Listed:
  • E. Kwan Choi
  • Hamid Beladi
  • Jiong Chen

Abstract

This paper considers trade policies and welfare in a Harris–Todaro model with risk‐averse workers. Workers are assumed to have identical and homothetic preferences, but their incomes differ, depending on whether and where they are employed. When workers are equally valued, maximizing social utility is equivalent to maximizing the utility of a rural worker. An optimal policy consists of a production subsidy on the exportable and an import tariff. This model explains the widespread use of import tariffs on manufactured goods along with production subsidies on the export sectors in many LDCs. JEL Classification Numbers: F13, D8.

Suggested Citation

  • E. Kwan Choi & Hamid Beladi & Jiong Chen, 2001. "Employment Risk and Optimal Trade Policies," The Japanese Economic Review, Japanese Economic Association, vol. 52(3), pages 303-315, September.
    • Handle: RePEc:bla:jecrev:v:52:y:2001:i:3:p:303-315
    DOI: 10.1111/1468-5876.00196
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5876.00196
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5876.00196?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecrev:v:52:y:2001:i:3:p:303-315. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.