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Foreign enclaves, informal sector and urban unemployment: A theoretical analysis

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  • Bandopadhyay, Titas Kumar

Abstract

ABSTRACT :- We consider a small open Harris-Todaro economy with a rural foreign enclave and urban informal sector. We introduce consumption-efficiency relation to explain the simultaneous existence of informal sector and urban unemployment. Different types of immobility and mobility of capital are assumed in different sections of this paper. We also analyse the effects of expansion of foreign enclave on urban unemployment and on domestic factor income. In many cases, we get the results opposite to that obtained in the young-Miyagiwa model.

Suggested Citation

  • Bandopadhyay, Titas Kumar, 2002. "Foreign enclaves, informal sector and urban unemployment: A theoretical analysis," MPRA Paper 3136, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3136
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    More about this item

    Keywords

    FOREIGN ENCLAVES; INFORMAL SECTOR ; URBAN UNEMPLOYMENT;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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