
Revisiting the Apparent Paradox: Foreign Capital Inflow, Welfare Amelioration and ‘Jobless Growth’ with Agricultural Dualism and Non-traded Intermediate Input
Revisiting the Apparent Paradox: Foreign Capital Inflow, Welfare Amelioration and ‘Jobless Growth’ with Agricultural Dualism and Non-traded Intermediate Input
- Soumyatanu Mukherjee
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제27권 제1호
- 등재여부 : KCI등재
- 2012.03
- 123 - 133 (11 pages)
In order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris-Todaro (HT) model in the presence of protectionist policy; this paper, in terms of a three-sector HT type general equilibrium model with agricultural dualism where advanced agricultural sector produces a non-traded intermediate input using capital apart from labour and land for the agro-based industry in the urban sector, tries to show that foreign capital inflow may not only improve social welfare, but also lower the magnitude of urban unemployment of labour or may lead to the phenomenon of ``jobless growth``.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. Comparative Static Exercise
Ⅳ. Concluding Remarks