Infrastructure Aid, Deindustrialization and Urban Unemployment

E. Kwan Choi and Jai-Young Choi
Authors registered in the RePEc Author Service: Eun Kwan Choi

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper investigates the role of infrastructure aid to developing countries beset with unemployment. Since unemployment persists in most developing countries with chronic foreign debts, the impact of infrastructure aid is analyzed using an extended Harris-Todaro model with two traded good sectors and a nontraded good sector. The paper delineates sufficient conditions under which infrastructure aid may lead to a Dutch Disease effect.

Date: 2007-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12903

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