Liberalisation and Jobless Growth in Developing Economy

Soumyatanu Mukherjee ()
Additional contact information
Soumyatanu Mukherjee: School of Economics, Postal: Sir Clive Granger Building, University Park, NG7 2RD, Nottingham, United Kingdom

Journal of Economic Integration, 2014, vol. 29, 450-469

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 capital-intensive 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.

Keywords: Trade Liberalisation; Labour Market Reform; Agricultural Dualism; Jobless Growth; Non-traded Intermediate Input; Urban Unemployment (search for similar items in EconPapers)
JEL-codes: F11 F16 J21 O24 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://sejong.metapress.com/ Full text (application/pdf)

Related works:
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:ris:integr:0636

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().