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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

(p.62) 6 International Trade, the Informal Sector, and Welfare
The Outsiders

Sugata Marjit

Saibal Kar

Oxford University Press

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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