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FDI in Agricultural Land, Welfare and Unemployment in a Developing Economy

Sarbajit Chaudhuri () and Dibyendu Banerjee

MPRA Paper from University Library of Munich, Germany

Abstract: The paper purports to examine the consequences of foreign direct investment (FDI) in agricultural land in a developing economy using a three-sector general equilibrium model with simultaneous existence off unemployment of both skilled and unskilled labour. The analysis finds that FDI in agriculture does not only improve national welfare unequivocally but also mitigates unemployment problem of both types of labour. The paper theoretically justifies the desirability of flow of FDI in agriculture in the developing economies.

Keywords: FDI in agricultural land; national welfare; unemployment; fair wage hypothesis; skilled labour; unskilled labour; general equilibrium (search for similar items in EconPapers)
JEL-codes: F13 J41 F10 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2010-05-30
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Journal Article: FDI in agricultural land, welfare and unemployment in a developing economy (2010) Downloads
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