Economic growth and the rise of protectionism and urban unrest in developing economies

Henry Schwalbenberg

Open Economies Review, 1994, vol. 5, issue 1, 65-88

Abstract: This paper examines how economic growth can affect various political actors and influence trade and labor policies in a developing economy. The paper extends the Findlay-Wellisz (1982) model of endogenous trade policy to include the endogenous determination of an urban-rural wage differential along lines suggestive of the Harris-Todaro (1970) model. Under assumptions normally associated with developing economies, the model shows that growth, stimulated primarily by capital formation, can lead to the rise of protectionism and urban unrest. Copyright Kluwer Academic Publishers 1994

Keywords: growth; protectionism; dualism; collective action; developing countries (search for similar items in EconPapers)
Date: 1994
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DOI: 10.1007/BF01000745

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