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The OutsidersEconomic Reform and Informal Labour in a Developing Economy$
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Sugata Marjit and Saibal Kar

Print publication date: 2011

Print ISBN-13: 9780198071495

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198071495.001.0001

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International Trade, the Informal Sector, and Welfare

International Trade, the Informal Sector, and Welfare

Chapter:
(p.62) 6 International Trade, the Informal Sector, and Welfare
Source:
The Outsiders
Author(s):

Sugata Marjit

Saibal Kar

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198071495.003.0006

This chapter deals with trade in informal commodities and measures the welfare levels under various exogenous shocks. The chapter is essentially divided into two parts. The first part offers a full-employment model of trade in the vintage of the traditional Hecksher–Ohlin–Samuelson framework with full-employment in all the sectors of the economy, but with the standard characterization of a segmented labour market. The second part introduces the possibility of open unemployment.

Keywords:   informal production, exogenous shocks, full-employment model, trade, tariffs, Hecksher–Ohlin–Samuelson framework, open unemployment, welfare

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