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Sub -optimal Tariff Policy and Gains from Trade for LDCs with Urban Unemployment

Author

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  • M. ALI KHAN

    (Hopkins University, Baltimore, Maryland)

  • PO-SHENG LIN

    (Hopkins University, Baltimore, Maryland)

Abstract

In this paper we examine the issue of gains from trade in a setting which admits urban unemployment and a variety of urban, labour market conditions. In addition to the conventional criterion, we also consider the case when the size of the urban unemployed is the sole determinant of welfare. The results lean heavily on factor market stability and are sensitive to the commodity being imported and to the assumption of intersectoral mobility of capital.

Suggested Citation

  • M. Ali Khan & Po-Sheng Lin, 1982. "Sub -optimal Tariff Policy and Gains from Trade for LDCs with Urban Unemployment," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 21(2), pages 105-126.
    • Handle: RePEc:pid:journl:v:21:y:1982:i:2:p:105-126
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    References listed on IDEAS

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    6. Jones, Ronald W., 1975. "Income distribution and effective protection in a multicommodity trade model," Journal of Economic Theory, Elsevier, vol. 11(1), pages 1-15, August.
    7. Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1005-1010, Nov./Dec..
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    12. Raveendra N. Batra, 1973. "Studies in the Pure Theory of International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01423-1, March.
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    Cited by:

    1. M. Ali Khan, 1992. "On Measuring the Social Opportunity Cost of Labour in the Presence of Tariffs and an Informal Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 535-564.
    2. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    3. Titas Kumar Bandopadhyay, 2007. "Trade Reform, Capital Mobility, and Efficiency Wage in a Harris-Todaro Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 163-174.
    4. Autsawin Suttiwichienchot & Nattapong Puttanapong, 2014. "A Study on Internal Labor Movement and Policy Multiplier in Thailand," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(3), pages 57-68.

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