Bandopadhyay, Titas Kumar and Chaudhuri, Sarbajit (2011): Job-search and FDI in a two-sector general equilibrium model.
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The purpose of this paper is to extend the Fields’ (1989) multi sector job-search model by introducing international trade and capital. Two types of capital are considered: fixed capital and mobile capital. The effects of search intensity and the inflow of foreign capital on the volume and the rate of urban unemployment and on the social welfare are also examined in both of the two cases. The main finding is: more efficient on-the-job search from the rural sector raises unemployment rate when capital is mobile between the two sectors. This is counterproductive to the standard result.
|Item Type:||MPRA Paper|
|Original Title:||Job-search and FDI in a two-sector general equilibrium model|
|English Title:||Job-search and FDI in a two-sector general equilibrium model|
|Keywords:||Job search, foreign capital, unemployment rate, ex-post labour, ex-ante labour, general equilibrium|
|Subjects:||F - International Economics > F1 - Trade > F10 - General
J - Labor and Demographic Economics > J1 - Demographic Economics > J10 - General
I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I28 - Government Policy
|Depositing User:||Sarbajit Chaudhuri|
|Date Deposited:||25. Dec 2011 21:04|
|Last Modified:||12. Feb 2013 09:21|
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