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Liberalisation and jobless growth in developing economy

Liberalisation and jobless growth in developing economy
Liberalisation and jobless growth in developing economy

This paper explains why a developing country may experience a jobless growth in the organised sectors during liberalised regime within the framework of a three-sector mobile capital version of Harris-Todaro type general equilibrium model describing rural-urban migration with agricultural dualism and a non-traded intermediate input. Main findings support the fact that as a consequence of different trade reform policies, organised sectors have experienced increased competition from foreign markets which has forced them to lax labour laws, with the freedom to switch towards more capitalintensive techniques of production, resulting retrenchment of relatively less productive workers and ending up with a jobless growth under the liberalised regime. These results are particularly interesting for their contradiction to the predictions of the standard Harris-Todaro model.

Agricultural dualism, Jobless growth, Labour market reform, Non-traded intermediate input, Trade liberalisation, Urban unemployment
1225-651X
450-469
Mukherjee, Soumyatanu
3eb37c57-3efd-4203-a81b-de3acad02811
Mukherjee, Soumyatanu
3eb37c57-3efd-4203-a81b-de3acad02811

Mukherjee, Soumyatanu (2014) Liberalisation and jobless growth in developing economy. Journal of Economic Integration, 29 (3), 450-469. (doi:10.11130/jei.2014.29.3.450).

Record type: Article

Abstract

This paper explains why a developing country may experience a jobless growth in the organised sectors during liberalised regime within the framework of a three-sector mobile capital version of Harris-Todaro type general equilibrium model describing rural-urban migration with agricultural dualism and a non-traded intermediate input. Main findings support the fact that as a consequence of different trade reform policies, organised sectors have experienced increased competition from foreign markets which has forced them to lax labour laws, with the freedom to switch towards more capitalintensive techniques of production, resulting retrenchment of relatively less productive workers and ending up with a jobless growth under the liberalised regime. These results are particularly interesting for their contradiction to the predictions of the standard Harris-Todaro model.

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More information

Published date: 1 January 2014
Keywords: Agricultural dualism, Jobless growth, Labour market reform, Non-traded intermediate input, Trade liberalisation, Urban unemployment

Identifiers

Local EPrints ID: 441140
URI: http://eprints.soton.ac.uk/id/eprint/441140
ISSN: 1225-651X
PURE UUID: 42f90376-c9ad-4ac5-88f8-618057bfd9bc
ORCID for Soumyatanu Mukherjee: ORCID iD orcid.org/0000-0003-0674-1064

Catalogue record

Date deposited: 02 Jun 2020 16:32
Last modified: 08 Jan 2022 03:42

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