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An Analysis of Rural-Urban Migration and Protection

Hamid Beladi and Sugata Marjit

Canadian Journal of Economics, 1996, vol. 29, issue 4, 930-40

Abstract: In this paper, a Harris-Todaro migration model is developed with the urban manufacturing sector supplying a crucial input for the rural sector. Capital is region specific but flows freely between two urban sectors. Final goods are traded and have exogenously fixed prices. If this economy imposes a tariff on the import-competing manufacturing sector, employment might go down even if the protected sector is labor intensive. The paper describes how intersectoral linkages can play a significant role in determining the employment effects of a tariff.

Date: 1996
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