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Economic growth and the rise of protectionism and urban unrest in developing economies

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  • Henry Schwalbenberg

Abstract

This paper examines how economic growth can affect various political actors and influence trade and labor policies in a developing economy. The paper extends the Findlay-Wellisz (1982) model of endogenous trade policy to include the endogenous determination of an urban-rural wage differential along lines suggestive of the Harris-Todaro (1970) model. Under assumptions normally associated with developing economies, the model shows that growth, stimulated primarily by capital formation, can lead to the rise of protectionism and urban unrest. Copyright Kluwer Academic Publishers 1994

Suggested Citation

  • Henry Schwalbenberg, 1994. "Economic growth and the rise of protectionism and urban unrest in developing economies," Open Economies Review, Springer, vol. 5(1), pages 65-88, March.
    • Handle: RePEc:kap:openec:v:5:y:1994:i:1:p:65-88
    DOI: 10.1007/BF01000745
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    References listed on IDEAS

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    1. Findlay, Ronald & Lundahl, Mats, 1987. "Racial discrimination, dualistic labor markets and foreign investment," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 139-148, October.
    2. Perotti, Roberto, 1992. "Income Distribution, Politics, and Growth," American Economic Review, American Economic Association, vol. 82(2), pages 311-316, May.
    3. Calvo, Guillermo A, 1978. "Urban Employment and Wage Determination in LDC's: Trade Unions in the Harris-Todaro Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(1), pages 65-81, February.
    4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    5. repec:bla:econom:v:42:y:1975:i:165:p:59-78 is not listed on IDEAS
    6. Ronald Findlay & Stanislaw Wellisz, 1982. "Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare," NBER Chapters, in: Import Competition and Response, pages 223-244, National Bureau of Economic Research, Inc.
    7. Ruffin, Roy & Jones, Ronald, 1977. "Protection and real wages: The neoclassical ambiguity," Journal of Economic Theory, Elsevier, vol. 14(2), pages 337-348, April.
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