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학술저널

Foreign Investment, Urban Unemployment, and Informal Sector

Foreign Investment, Urban Unemployment, and Informal Sector

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In this paper we extend the Harris-Todaro model to include an urban informal sector. The effects of exogenous inflow of foreign capital on outputs, unemployment and welfare are examined in the model where the product of the informal sector is used as an industrial input in the urban formal sector. We also analyze the implications of the capital inflow for income distribution.

Ⅰ. Introduction

Ⅱ. The Model and its Assumptions

Ⅲ. Foreign Investment and Unemployment

Ⅳ. Foreign Investment and Welfare

Ⅴ. Income Distribution

Ⅵ. Concluding Remarks

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