Special Economic Zones and Agriculture with Increasing Returns

Mukherjee, Soumyatanu (2011): Special Economic Zones and Agriculture with Increasing Returns.

Abstract

This paper has made an attempt to show that in a developing economy, agriculture and Special Economic Zones (SEZ) can go simultaneously without affecting one another if appropriate subsidy policy is designed by the government. We have considered increasing returns brought about by external economies of scale in the SEZ-led industrial sector with the help of Dixit-Stiglitz (1977) type of production function where resource used to produce each variety of the SEZ-good is itself produced using constant returns to scale (CRS) technology and CRS is also present in the agricultural sector.

• Item Type: MPRA Paper
• Language: English
• Keywords: Special Economic Zones; Increasing Returns; External Economies of Scale; Constant Returns to Scale; Dixit-Stiglitz type Production Function
• Subjects: F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J43 - Agricultural Labor Markets; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C65 - Miscellaneous Mathematical Tools; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages ; Payment Methods

References

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5. Sarkar, Abhirup, 2007. “Development and Displacement: Land Acquisition in West Bengal”, Economic and Political Weekly, Vol. 42, No. 16, April 21-27.