The parpose of this paper is to model and describe the consequences for labor markets in an underdeveloped economy of foreign Investment in an enclave sector.Foreign technology tends to expose some of the hidden talents in the local labor force.Replacement of foreign labor by domestic labor...

The seminal work by Ramaswami (1968) comparing the advantages of allowing international labor inflows with those of foreign investment elicited an immediate response from Webb (1970). and subsequent elaborations by Bhagwati (1979). Calvo and Wellisz (1983), Bhagwati and Srinivasan (1983), and...

It has been over fifty years since Stolper and Samuelson (1941) pointed out that whereas free trade may be beneficial to a country in aggregate terms, even a broadbased factor such as labor may be hurt by the price changes which trade brings about. In particular, a staple of Heckscher-Ohlin...

The concept of factor intensity has played a key role in the development of international trade theory. The factor proportions utilized in the production of commodities differ from activity to activity. Some commodities employ a higher ratio of capital to labor than do others, and the basic...