Gupta, Kausik creator text xu| 1999 continuing ng p.51-71. 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. Technology transfer Unemployment Foreign investment Indian Economic Review 180718