Development in a Dual Economy: The Importance of Resource-Use Regulation

Frederik Noack, Marie-Catherine Riekhof and Martin Quaas

Journal of the Association of Environmental and Resource Economists, 2018, vol. 5, issue 1, 233 - 263

Abstract: We study how rights-based resource management can trigger labor reallocation and development in a dual economy. Under open access, resource users may remain trapped in poverty. Regulation of resource use generates rents that can finance labor reallocation to resource-independent production. Transferability of harvest quotas broadens the scope for labor reallocation, in particular if harvest quotas are distributed unequally. Once the process of labor reallocation is started, it continues until a long-run efficient labor allocation is achieved. We use data from an Indian fishery to illustrate numerically how the design and distribution of harvest quotas affects labor, wealth, and resource dynamics in a rural economy.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://dx.doi.org/10.1086/694222 (application/pdf)
http://dx.doi.org/10.1086/694222 (text/html)
Access to the online full text or PDF requires a subscription.

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:ucp:jaerec:doi:10.1086/694222

Access Statistics for this article

More articles in Journal of the Association of Environmental and Resource Economists from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().