Marjit, Sugata and Mandal, Biswajit (2010): Extortion and Informal Sector in a Small Open Economy.
Download (172kB) | Preview
Informal economy involving unrecorded, unregistered, extra legal activities employs majority of the workforce in the developing world. Such extra legal existence of informal manufacturing and service sectors is facilitated through extortion by agents of political forces in power. Such extortion activities themselves constitute an informal segment. We develop a general equilibrium model to explore the possible consequences of a change in the degree of extortion, change in the quality of administration, tariff reform etc. Economic reform of various kinds has interesting effects on the size of the extortion sector. Various reformatory policies may actually lead to an expansion of the informal sector.
|Item Type:||MPRA Paper|
|Original Title:||Extortion and Informal Sector in a Small Open Economy|
|English Title:||Extortion and Informal Sector in a Small Open Economy|
|Keywords:||International Trade, Extortion, 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
F - International Economics > F1 - Trade
|Depositing User:||Biswajit Mandal|
|Date Deposited:||16. Sep 2010 11:39|
|Last Modified:||30. Dec 2015 22:00|
Agenor, R. and P. Montiel (1997) - Development Macroconomic, 2nd edition, NJ: Princeton University Press.
Carruth, A., and A. Oswald (1981) - The Determination of Union and Non-Union wage- rates, European Economic Review, 16 (2), pp 285-302
Beladi, H. and C. Chao (1993) – Non-traded goods, urban unemployment and welfare in LDCs. European Journal of Political Economy, 9(2), pp 281-292.
Beladi, H. and S. Marjit, (1992). Foreign Capital and Protectionism, Canadian Journal of Economics, Canadian Economics Association, 25(1), pp 233-38.
Beladi, H. and S. Yabuuchi (2001) – Traiff induced capital inflow and welfare in the presence of unemployment and informal sector, Japan and the World Economy, 13(1), pp 51-60.
Bhagwati, J. (1982) - Directly Unproductive Profit Seeking (DUP) Activities. Journal of Political Economy, 90(5), pp 988-1002.
Chaudhuri, S. (2003). How and how far to liberalize a developing economy with informal sector and factor market distortions, Journal of International Trade & Economic Development, 12(4), pp 403-428.
Chaudhuri, S. and U. Mukhopadhyay, (2010). Revisiting the Informal Sector: A General Equilibrium Approach, Springer, Heidelberg.
Ethier, W. (1984) – Higher dimensional issues in trade theory. In R. W. Jones and P. B. Kenen (Eds) Handbook of International Economics, Vol. 1, Amsterdam,: North-Holland.
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. (1965) – The Structure of Simple General Equilibrium Models. Journal of Political Economy, 73, pp.557-572.
Jones, R.W. (1971) – A three-factor model in theory, trade and history. In Bhagwati, J et al (Eds) Trade, Balance of Payments and Growth, North- Holland, Amsterdam, pp. 3-21.
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 (2008) – Competitive trade models and real world features. Economic Theory, doi: 10.1007/s00199-0394-0.
Kar, S. and S. Marjit (2001) – Informal sector in general equilibrium: welfare effects of trade policy reforms, International Review of Economics and Finance, 10(3), pp 289-300.
Konard, K. A. and S. Skaperdas (1998) – Extortion, Economica, 65(260) pp 461-477.
Mandal, B. and S. Marjit (2010) – Corruption and Wage Inequality?. International Review of Economics and Finance, 19(1), pp 166-172.
Marcoullier D and L. Young (1995) - The black hole of graft : predatory state and the informal economy, American Economic Review ,85 (3), pp630-646.
Marjit, S. (2003) – Economic reform and informal wage: A general equilibrium analysis. Journal of Development Economics, 72(1), pp 371-378.
Marjit, S. & H. Beladi, (1999).- Complementarity between Import Competition and Import Promotion, Journal of Economic Theory, 86(2), pp 280-285.
Marjit, S., S. Ghosh, & A. Biswas, (2007) - Informality, corruption and trade reform, European Journal of Political Economy, 23(3), pp 777-789.
Marjit, S. and S. Kar, (2009) – A Contemporary Perspective on the Informal Labor Market: Theory, Policy and the Indian experience, Economic and Political Weekly, XLIV(14).
Marjit, S. and S. Kar, (2009a) – Urban Informal Sector and Poverty, International Review of Economics and Finance, 18(4), pp631-642.
Marjit, S. & S. Kar, and H. Beladi, (2007) - Trade Reform and Informal Wages, Review of Development Economics, 11(2), pp 313-320.
Marjit, S., S. Kar, & H. Beladi, (2007a) - Protectionary bias in agriculture: A pure economic argument, Ecological Economics, 63(1), pp 160-164.
Skaperdas, S. (1992) – Cooperation, conflict and power in the absence of property rights, American Economic Review, 82(4), pp 720-739.
Skaperdas, S. and S. Constantinos (1997) – The distribution of income in the presence of appropriative activities, Economica, 64(253), pp 101-117.