Foreign Investment in the Presence of an Informal Sector

Vandana Chandra · Mohammed Ali Khan

122 citations0/0 files storedEconomica

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Global trade and economics International Business and FDI Economic Theory and Policy

Abstract

In the context of a segmented economy in which the urban unemployed subsist in informal-sector activities, Earl Grinols (1991) has recently questioned conventional wisdom whereby foreign investme nt with repatriated earnings is necessarily immiserizing for the host country. In this paper, the authors extend Grinols's analysis and pl ace it in a broader context, permitting richer conceptions of informal-sector activities. Their principal finding is that the original insight is surprisingly robust once Heckscher-Ohlin-Samuelson factor intensities are suitably modified and interpreted. The authors' models may also have independent inter est for other work on the informal sector. Copyright 1993 by The London School of Economics and Political Science.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 122 citations exist upstream.

References

1979The informal economy 1977Tariffs, foreign capital and immiserizing growth 1976The urban informal sector 1974World trade and payments 1974An economic analysis of the duty-free zone 1968Distortions and Immiserizing Growth: A Generalization 1983Tariffs, foreign capital and national welfare with sector-specific factors

Cited by

2009Globalization and informal jobs in developing countries 2010Dropping the Books and Working Off the Books 2000Analysing foreign market entry – The choice between greenfield investment and acquisitions 2008Informal Employment Relationships and Labor Market Segmentation in Transition Economies: Evidence from Ukraine 2008Wage inequality in a dual economy and international mobility of factors: Do factor intensities always matter?2005Foreign capital, welfare and urban unemployment in the presence of agricultural dualism 1997Informal sector and informal capital market in a small open less-developed economy

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.