This note shows that in a developing economy, agriculture and Special Economic Zones (SEZ) can grow simultaneously without affecting one another if an appropriate subsidy policy is designed by the government. We consider increasing returns brought about by external economies of scale in the...

This note shows that in a developing economy, agriculture and Special Economic Zones (SEZ) can grow simultaneously without affecting one another if an appropriate subsidy policy is designed by the government. We consider increasing returns brought about by external economies of scale in the...

This paper has made an attempt to show that in a developing economy, agriculture and Special Economic Zones (SEZ) can go simultaneously without affecting one another if appropriate subsidy policy is designed by the government. We have considered increasing returns brought about by external...

Some industries exhibit external economies of scale. In these cases,the introduction of self-financing tax subsidy programmes canimprove social welfare. This paper advocates intervention incompetitive markets if economies of scale existand implementing the policy is inexpensive.

This paper uses new product-specific, micro-level US data to show that New England had lower levels of productivity in cotton spinning than Lancashire, c. 1900, contradicting results derived by Broadberry from the Censuses of Production. The discrepancy stems from the Censuses’ poor methods of...

We seek to explain the economic volatility of the last 6 years, in particular the rapid expansion and contraction of the knowledge sectors. Our hypothesis is that these sectors amplify the business cycle due to their increasing returns to scale, growing faster than others in an upswing and...

We investigate the effects of a reduction in trade costs on industrial location and welfare in an economy with external economies of scale. We propose a Chamberlinian agglomeration model with footloose capital, which is analytically-solvable. With respect to industrial location, we demonstrate...

Although empirical evidence shows that higher product market competition increases unionized wage, the theoretical literature did not pay much attention to this aspect. We show that the positive relation between product market competition and unionized wage may occur in the presence of external...