Employment Risk and Optimal Trade Policies

E. Kwan Choi, Hamid Beladi and Jiong Chen

The Japanese Economic Review, 2001, vol. 52, issue 3, 303-315

Abstract: This paper considers trade policies and welfare in a Harris–Todaro model with risk‐averse workers. Workers are assumed to have identical and homothetic preferences, but their incomes differ, depending on whether and where they are employed. When workers are equally valued, maximizing social utility is equivalent to maximizing the utility of a rural worker. An optimal policy consists of a production subsidy on the exportable and an import tariff. This model explains the widespread use of import tariffs on manufactured goods along with production subsidies on the export sectors in many LDCs. JEL Classification Numbers: F13, D8.

Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1468-5876.00196

Related works:
Working Paper: Employment Risk and Optimal Trade Policies (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jecrev:v:52:y:2001:i:3:p:303-315

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1352-4739

Access Statistics for this article

The Japanese Economic Review is currently edited by Akira Okada

More articles in The Japanese Economic Review from Japanese Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().