Foreign capital, technology transfer and urban unemployment: theoretical analysis
By: Gupta, Kausik.
Material type:
ArticlePublisher: 1999Description: p.51-71.Subject(s): Technology transfer | Unemployment | Foreign investment
In:
Indian Economic ReviewSummary: We consider a three-sector Generalized Harris-Todaro model where the third sector is the foreign enclave. It is assumed to be located in the urban area and uses sector-specific foreign capital. In this model technology transfer takes place from the foreign enclave to the domestic enclave. A dynamic version of the model is considered. The long-run equilibrium and the comparative steady-state effects are analyzed in the presence of technology transfer. We get some interesting effects of reduction in the tax rate on foreign capital income on the short-run equilibrium levels of national income and urban unemployment rate under some meaningful conditions. - Reproduced.
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Articles
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Indian Institute of Public Administration | Volume no: 34, Issue no: 1 | Available | AR52888 |
We consider a three-sector Generalized Harris-Todaro model where the third sector is the foreign enclave. It is assumed to be located in the urban area and uses sector-specific foreign capital. In this model technology transfer takes place from the foreign enclave to the domestic enclave. A dynamic version of the model is considered. The long-run equilibrium and the comparative steady-state effects are analyzed in the presence of technology transfer. We get some interesting effects of reduction in the tax rate on foreign capital income on the short-run equilibrium levels of national income and urban unemployment rate under some meaningful conditions. - Reproduced.
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