Utilizing a three-sector endogenous growth model, we study the effects of foreign direct investment (FDI) on the dynamics of urban unemployment, labor income and capital income as well as national welfare in a Harris-Todaro economy. It is shown that more FDI can affect the economy's dynamics and...

The past decade has witnessed a decline in saving throughout the developed world—the United States has the dubious distinction of leading the way. The consequences can be serious. For individuals, their own economic security and that of their families is jeopardized. For society, inadequate...