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Labor market aspects of enclave-led growth

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  • Jones, Ronald Winthrop
  • Marjit, Sugata

Abstract

The parpose of this paper is to model and describe the consequences for labor markets in an underdeveloped economy of foreign Investment in an enclave sector.Foreign technology tends to expose some of the hidden talents in the local labor force.Replacement of foreign labor by domestic labor coupled with a process of skill revelation generate non monotonic wage and profit movements in the lQcal economy.We also discuss the effects of growth and skill development on the pattern of wage movement and the exit period of foreign personnel both in the fixed and variable proportions cases.

Suggested Citation

  • Jones, Ronald Winthrop & Marjit, Sugata, 1992. "Labor market aspects of enclave-led growth," Discussion Papers, Series II 179, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:179
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    References listed on IDEAS

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    1. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
    2. Warr, Peter G, 1989. "Export Processing Zones: The Economics of Enclave Manufacturing," The World Bank Research Observer, World Bank, vol. 4(1), pages 65-88, January.
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    Cited by:

    1. Bharati Basu & Jianfeng Yao, 2009. "Foreign Direct Investment and Skill Formation in China," International Economic Journal, Taylor & Francis Journals, vol. 23(2), pages 163-179.
    2. Chaudhuri, Sarbajit & Marjit, Sugata, 2017. "International trade and quality of labour," International Review of Economics & Finance, Elsevier, vol. 49(C), pages 582-595.
    3. Ronald W. Jones, 1995. "The Discipline of International Trade," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 273-288, September.
    4. Broll, Udo & Hansen, Sabine & Marjit, Sugata, 2004. "Domestic labor, foreign capital and national welfare," Dresden Discussion Paper Series in Economics 12/04, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    5. Basu, Bharati, 2017. "Labor market effects of export processing zones in the presence of unemployment," Economic Modelling, Elsevier, vol. 66(C), pages 19-29.
    6. Ronald Jones & Sugata Marjit, 2009. "Competitive trade models and real world features," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(1), pages 163-174, October.

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