This paper investigates the effects of forming export processing zones on factor rewards, national income, and the intermediate-good-producing sector under variable returns to scale (VRS). It is shown that the results obtained in the model under constant returns to scale are substantially...

This paper analyzes the consequences of international factor movements on the skilled-unskilled wage inequality in a dual-economy set-up that includes unemployment and three intersectorally mobile factors of production-unskilled labor, skilled labor, and capital. Thus far, theoretical literature...

This paper examines the implications of imperfect labor mobility and unemployment in developing countries. We analyze the effects of wage subsidy policies, factor growth, and the change in labor mobility on unemployment and national income in an economy that is characterized by the existence of...

The effects of foreign direct investments on welfare and unemployment are examined in the case where there is urban unemployment. Our main findings are that an increase in foreign capital investment leaves social welfare intact and reduces unemployment if foreign capital is specific to foreign...

This paper investigates the effects of export processing zones (EPZs) on factor rewards, national income and the output of the domestic intermediate good producing sector (backward linkage effect) in surpluslabor developing countries. It is shown that if the intermediate good is internationally...

Unemployment is present in many developing countries. Thus, the government of a country that suffers from chronic unemployment often wants to emigrate some workers to foreign countries. This paper investigates whether such a policy is successful for reducing domestic unemployment.