This paper analyzes the welfare implications of factor growth (i.e., labor growth and capital accumulation), in the mobile-capital Harris-Todaro (H-T) model by allowing the presence of variable returns to scale (VRS). It is shown that in contrast to the constant returns to scale (CRS) case,...

A competitive, general equilibrium model is developed to analyze the effectiveness of export-promotion policy. We show that the employment and welfare effects of Export promotion crucially depend on the foreign import demand elasticity and the Home country's propensity to consume is export...