We present a three-sector general equilibrium model with an informal sector, which produces an intermediary for the formal sector, to analyze the effects of different policies on the pollution level and welfare of the economy. The informal manufacturing sector creates pollution and higher the...

The paper reexamines the conventional results relating to inflow of foreign capital, removal of protectionism and structural reform programmes, in a small open economy in terms of a two-sector general equilibrium model with an informal sector. The paper shows that in the presence of labour...

The paper reexamines the conventional results relating to inflow of foreign capital, removal of protectionism and structural reform programmes, in a small open economy in terms of a two-sector general equilibrium model with an informal sector. The paper shows that in the presence of labor market...