Would Recession Induce More Intermediation in the Corrupt Informal Sector?

Mandal, Biswajit (2009): Would Recession Induce More Intermediation in the Corrupt Informal Sector?

Abstract

In this paper my endeavor is to give you an idea about the upshot of a recessionary phase on the intermediation activity which is required for the survival of the informal fragment of the society. Informal part of the economy covers a large chunk of the total economic activities in any stylized developing economy. Therefore it is imperative to check possible consequences of recession on this subdivision because intermediation also requires unskilled work force which need to be pulled out from the productive spectrum. In doing so I would be using the hybrid of standard Heckscher - Ohlin and Specific Factor general equilibrium models of trade. I would also strive to focus on the wage-inequality paradigm.

• Item Type: MPRA Paper
• Language: English
• Keywords: International Trade; Corruption; Informal sector; General Equilibrium.
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; D - Microeconomics > D5 - General Equilibrium and Disequilibrium; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade

References

Chaudhuri, S. (2009) – Economic Recession and Informal Sector Workers, MPRA paper no.18033. http://mpra.ub.uni-muenchen.de/18033/

Gruen, F. and M. Corden (1970) – A tariff that worsens terms of trade. In I. A. McDougall and R. H. Snapes (Eds) Studies in International Economics, Amsterdam: North-Holland

Jones, R.W. and S. Marjit (1992) – International trade and endogenous production structure. In Neuefeind, W et al (Eds) Economic Theory and International Trade: Essays in honour of J. Trout Rader, Sringer Verlag.

Jones, R.W. and S. Marjit (2009) – Competitive trade models and real world features. Economic Theory, Vol. 41 No. 1, pp – 163-174.

Mandal, B. (2009a) – Trade reform in a corrupt economy – A note, MPRA paper no. 18811. http://mpra.ub.uni-muenchen.de/18811/

Mandal, B. (2009b) – Recession-A boon for the Informal Sector?, mimeo, Visva-Bharati University.

Mandal, B. and S. Marjit (2010) – Corruption and Wage Inequality?. International Review of Economics and Finance, Vol. 19, pp 166-172.

Marjit, S. (2009) – Firm Heterogeneity, Informal Wage and Good Governance. MPRA paper no. 19168. http://mpra.ub.uni-muenchen.de/19168/

Marjit, S., Chaudhuri, S. and Kar, S. (2009) – Recession in the skilled sector and Implications for informal wage, MPRA paper no.18003. http://mpra.ub.uni-muenchen.de/18003/

Marjit, S. and Kar, S. (2009) – A Contemporary Perspective on the Informal Labor Market: Theory, Policy and the Indian experience, Economic and Political Weekly, XLIV (14).

Marjit, S and Mandal, B. (2008) - Corruption and Trade in General Equilibrium, Leverhulme Centre for GEP, University of Nottingham, RP No. 2008/15.

UNCTAD (2009) – Global economic crisis: implications for trade and development, Report by UNCTAD Secretariat.