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Liberalization and "Jobless Growth" in a Developing Economy: some Extended Results

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  • Soumyatana Mukherjee

Abstract

This paper, in terms of a three-sector mobile capital version of Harris-Todaro type general equilibrium model of rural-urban migration with agricultural dualism and a non-traded intermediate input, tries to theoretically explain why a developing country may experience a ‘jobless growth’ during liberalised regime as suggested by empirical evidences. I have considered impacts of trade liberalization (captured by a tariff-reform in the protected importcompeting sector) and liberalization of labour laws (captured by a reduction in the bargaining strength of the labour unions). These findings are particularly interesting for their contradiction to the predictions of standard Harris-Todaro model.

Suggested Citation

  • Soumyatana Mukherjee, 2013. "Liberalization and "Jobless Growth" in a Developing Economy: some Extended Results," Discussion Papers 2013-07, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:13/07
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    References listed on IDEAS

    as
    1. Chaudhuri, Sarbajit, 2007. "Foreign capital, welfare and urban unemployment in the presence of agricultural dualism," Japan and the World Economy, Elsevier, vol. 19(2), pages 149-165, March.
    2. Mukherjee, Soumyatanu, 2012. "Revisiting the Apparent Paradox: Foreign Capital Inflow, Welfare Amelioration and ‘Jobless Growth’ with Agricultural Dualism and Non-traded Intermediate Input," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 123-133.
    3. Marjit, Sugata & Beladi, Hamid, 1996. "Protection and the gainful effects of foreign capital," Economics Letters, Elsevier, vol. 53(3), pages 311-316, December.
    4. repec:bla:econom:v:42:y:1975:i:165:p:59-78 is not listed on IDEAS
    5. Shigemi Yabuuchi & Hamid Beladi, 2001. "Urban unemployment, informal sector and development policies," Journal of Economics, Springer, vol. 74(3), pages 301-314, October.
    6. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
    7. Sarbajit Chaudhuri & Ujjaini Mukhopadhyay, 2010. "Revisiting the Informal Sector," Springer Books, Springer, number 978-1-4419-1194-0, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade Liberalization; Labour Market Reform; Agricultural Dualism; Jobless Growth; Non-traded Intermediate Input; Urban Unemployment;
    All these keywords.

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