Foreign enclaves, informal sector and urban unemployment: A theoretical analysis

Titas Bandopadhyay

MPRA Paper from University Library of Munich, Germany

Abstract: ABSTRACT :- We consider a small open Harris-Todaro economy with a rural foreign enclave and urban informal sector. We introduce consumption-efficiency relation to explain the simultaneous existence of informal sector and urban unemployment. Different types of immobility and mobility of capital are assumed in different sections of this paper. We also analyse the effects of expansion of foreign enclave on urban unemployment and on domestic factor income. In many cases, we get the results opposite to that obtained in the young-Miyagiwa model.

Keywords: FOREIGN ENCLAVES; INFORMAL SECTOR; URBAN UNEMPLOYMENT (search for similar items in EconPapers)
JEL-codes: O18 (search for similar items in EconPapers)
Date: 2002-04
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