The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Sarbajit Chaudhuri - One of the best experts on this subject based on the ideXlab platform.
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Foreign Capital, Return to Education and Child labour
International Review of Economics & Finance, 2010Co-Authors: Jayanta Kumar Dwibedi, Sarbajit ChaudhuriAbstract:Abstract The paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy using a three-sector general equilibrium framework with child labour. We show that reduction in poverty is not a necessary condition for the problem of child labour to improve in the developing economies. Economic reforms like an inflow of Foreign Capital can mitigate the incidence of child labour by raising the return to education and lowering the earning opportunities of children.
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Foreign Capital inflow skilled unskilled wage inequality and unemployment of unskilled labour in a fair wage model
Economic Modelling, 2010Co-Authors: Sarbajit Chaudhuri, Dibyendu BanerjeeAbstract:Abstract This paper has developed a three-sector general equilibrium framework that explains unemployment of both skilled and unskilled labour. Unemployment of unskilled labour is of the Harris–Todaro (1970) type while unemployment of skilled labour is caused due to the validity of the FWH in the high-skill sector. There are two types of Capital one of which is specific to the primary export sector while the other moves freely among the different sectors. Inflows of Foreign Capital of either type unambiguously improve the economic conditions of the unskilled working class. However, the effects on the skilled–unskilled wage inequality and the extent of unemployment of both types of labour crucially hinge on the properties implied by the efficiency function of the skilled workers.
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wage inequality in a dual economy and international mobility of factors do factor intensities always matter
Economic Modelling, 2008Co-Authors: Sarbajit ChaudhuriAbstract:The paper develops a three-sector specific factor model with Harris-Todaro type unemployment to examine the consequences of international factor mobility on the skilled-unskilled wage inequality and urban unemployment of unskilled labour in a small open dual economy. The theoretical analysis shows that the consequences of international factor mobility on wage inequality may not necessarily depend on the difference in the factor intensity condition. Only when the unskilled wage in the low-skill urban sector is positively related to the rural wage, factor intensity conditions do matter. An emigration of skilled labour or an inflow of Foreign Capital may move the wages in favour of the unskilled labour and lower the magnitude of urban unemployment only if the low-skill urban sector is Capital-intensive (in a special sense). But, an immigration of unskilled labour produces exactly the opposite effects. The paper argues that provided the government undertakes supplementary measures to curb trade union power and prevent illegal immigration of unskilled labour, abundant inflows of Foreign Capital might be a solution to both deteriorating wage inequality and increasing unemployment of unskilled labour in the liberalized regime.
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Foreign Capital welfare and urban unemployment in the presence of agricultural dualism
Japan and the World Economy, 2007Co-Authors: Sarbajit ChaudhuriAbstract:Abstract In a two sector mobile Capital Harris–Todaro model, such as [Corden, W.M., Findlay, R., 1975. Urban unemployment, intersectoral Capital mobility, and development policy in a dual economy. Economica 42, 59–78], an inflow of Foreign Capital in the presence of protectionist policy is welfare deteriorating as well as unemployment accentuating. But, the developing countries have chosen liberalized investment and trade policies as their development strategies and have been able to attract a considerable amount of Foreign Capital during the last two decades. A relevant question is why these countries are yearning for Foreign Capital given its detrimental effects as predicted by the conventional theoretical literature on trade and development. This paper makes an attempt to address the above issue in terms of a three sector Harris–Todaro model with agricultural dualism and a non-traded final commodity. In the given setup, an inflow of Foreign Capital is likely to improve welfare and does not necessarily worsen the problem of unemployment. The paper may also be useful to explain as to why many of the developing economies have experienced ‘jobless growth’ in the liberalized regime.
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Foreign Capital welfare and urban unemployment in the presence of agricultural dualism
Research Papers in Economics, 2005Co-Authors: Sarbajit ChaudhuriAbstract:In a two sector mobile Capital Harris-Todaro model, such as Corden and Findlay (1975), an inflow of Foreign Capital in the presence of protectionist policy is welfare deteriorating as well as unemployment accentuating. But, the developing countries have chosen liberalized investment and trade policies as their development strategies and have been able to attract a considerable amount of Foreign Capital during the last two decades. A relevant question is why these countries are yearning for Foreign Capital given its detrimental effects as predicted by the conventional theoretical literature on trade and development. This paper makes an attempt to address the above issue in terms of a three sector Harris-Todaro model with agricultural dualism and a non- traded final commodity. In the given setup, an inflow of Foreign Capital is likely to improve welfare and does not necessarily worsen the problem of unemployment. The paper may also be useful to explain as to why many of the developing economies have experienced ‘jobless growth’ in the liberalized regime.
Prasun Bhattacharjee - One of the best experts on this subject based on the ideXlab platform.
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sector specific inflow of Foreign Capital non traded sector and implications for real exchange rate
Social Science Research Network, 2017Co-Authors: Biswajit Mandal, Anindya Biswas, Prasun BhattacharjeeAbstract:This paper attempts to investigate the impact on factor prices and real exchange rate owing to an inflow of Foreign Capital only in the exportable sector of the host country. In doing so, we amalgamate Heckscher-Ohlin and Specific Factor models of trade which is popularly known as the H-O nugget. We show that consequent upon an inflow of Capital specific to the exportable sector, both the non-traded good production and the return to the factor specific to the non-traded good decrease while the exportable production expands. The effect of such an inflow of Foreign Capital on the real exchange rate is unambiguous and it increases.
Biswajit Mandal - One of the best experts on this subject based on the ideXlab platform.
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sector specific inflow of Foreign Capital non traded sector and implications for real exchange rate
Social Science Research Network, 2017Co-Authors: Biswajit Mandal, Anindya Biswas, Prasun BhattacharjeeAbstract:This paper attempts to investigate the impact on factor prices and real exchange rate owing to an inflow of Foreign Capital only in the exportable sector of the host country. In doing so, we amalgamate Heckscher-Ohlin and Specific Factor models of trade which is popularly known as the H-O nugget. We show that consequent upon an inflow of Capital specific to the exportable sector, both the non-traded good production and the return to the factor specific to the non-traded good decrease while the exportable production expands. The effect of such an inflow of Foreign Capital on the real exchange rate is unambiguous and it increases.
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Foreign Capital inflow and real exchange rate appreciation in developing economies theory and empirical evidence
Global Economy Journal, 2014Co-Authors: Anindya Biswas, Biswajit Mandal, Nitesh SahaAbstract:Foreign direct investment specially targeted to export sector is relatively new phenomenon in the global economy. Such inflow of Foreign Capital changes the sectoral composition of the economy, and it has some influence on the exchange rate of the destination country. In this study, we attempt to provide underlying theoretical and empirical explanations for exchange rate appreciation due to Foreign Capital inflow. We first use an extended three-sector specific factor model to explain analytically why and how an inflow of Foreign Capital boosts the price of a nontradable good that helps tilting the exchange rate in favor of the host country and then conduct an empirical analysis based on a panel dataset of 12 prominent developing countries over the time period 1980–2011 to substantiate our theoretical findings. We also strive to look at the possible consequences on factor prices and on sectoral de-composition of a representative economy.
Sugata Marjit - One of the best experts on this subject based on the ideXlab platform.
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Foreign Capital and protectionism
Canadian Journal of Economics, 1992Co-Authors: Hamid Beladi, Sugata MarjitAbstract:In terms of a simple model, it is shown that the growth in the export processing zone through an influx of Foreign-owned Capital reduces welfare for an economy importing Capital-intensive goods and following a protectionary policy. Similarly, it follows that growth in the export-processing zone should benefit economies importing labor-intensive goods.
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Foreign Capital and protectionism
1992Co-Authors: Hamid Beladi, Sugata MarjitAbstract:In terms of a simple model, it is shown that the growth in the export processing zone through an influx of Foreign-owned Capital reduces welfare for an economy importing Capital-intensive goods and following a protectionary policy. Similarly, it follows that growth in the export-processing zone should benefit economies importing labor-intensive goods.(This abstract was borrowed from another version of this item.)
Henry Tulkens - One of the best experts on this subject based on the ideXlab platform.
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optimality properties of alternative systems of taxation of Foreign Capital income
Journal of Public Economics, 1996Co-Authors: Jacques Mintz, Henry TulkensAbstract:Foreign source Capital income taxes are examined from the point of view of optimal taxation. In the framework of a simple economy with international real Capital flows, a taxonomy of alternative systems of such taxation is first presented, showing how crediting and other tax parameters induce what are called source-based, residence-based and related systems. Next, tax rates are determined that are optimal from a single country's point of view, given those of the others. The achievability of these rates under the various systems is analyzed. Finally, tax rates that are optimal from an international point of view are considered. Again, achievability of an international optimum under the various systems is considered, leading to the main conclusions that (i) a pure residence-based system in all countries can achieve an international fiscal optimum; (ii) it cannot, however, be sustained as an equilibrium.
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optimality properties of alternative systems of taxation of Foreign Capital income
Research Papers in Economics, 1994Co-Authors: Jack Mintz, Henry TulkensAbstract:Foreign source Capital income taxes are examined from the point of view of of optimal taxation. In the framework of a simple economy with international real Capital flows, a taxonomy of alternative systems of such taxation is first presented, showing how crediting and other tax parameters induce what are called source-based, residence-based and related systems. Next, tax rates are determined that are optimal from a single country's point of view, given those of the others. The achievability of these rates under the various systems is analyzed. Finally, tax rates that are optimal from an international point of view are considered. Again, achievability of an international optimum under that various systems is considered, leading to the main conclusions that (i) a residence based system in ail countries can achieve an international fiscal optimum; (ii) this is not the case with a source system; (iii) the former however cannot be sustained as an equilibrium.