This paper studies the existence of middle-income growth traps in a two-period overlapping generations model of economic growth with two types of labor and endogenous occupational choices. It also distinguishes between "basic" and "advanced" infrastructure, with the latter promoting design activities, and accounts for a knowledge network externality associated with product diversification. Multiple steady-state equilibria may emerge, one of them taking the form of a low-growth trap characterized by low productivity growth and a misallocation of talent -- defined as a relatively low share of high-ability workers in design activities. Improved access to advanced infrastructure may help escape from that trap. The implications of other public policies, including the protection of property rights and labor market reforms, are also discussed.

https://papers.ssrn.com/sol3/Delivery.cfm/6210.pdf?abstractid=2152800&rulid=17786&mirid=1

Middle-Income Growth Traps

The dissertation aims to explore the supply and demand side determinant of child labour at macro, meso and micro level. At macro level it explores the effect of globalization (defined as openness to trade and inflow of foreign direct investment) and credit market imperfections on child labour. At meso level it explores the effect of labour market conditions on child labour. As the above two levels of analysis are mainly concerned with the demand for child labour, the micro level analysis explores the supply side determinant of child labour. At micro level this dissertation explores the effect of intrahousehold distribution of power on child related outcome. Specifically it explores the effect of mother’s decision making power on her child’s labour and schooling. The macro level analysis is based on cross country regression framework while meso and micro level analysis is based on the data from Pakistan.

At macro level, this dissertation points out that trade openness and FDI inflow raise the standard of living in an economy thereby reducing child labour incidence. As the channel through which trade could affect child labour is by increasing income of the poor, credit market imperfection shows insignificant effect. At meso level, this dissertation points out that high adult wages in an area increase demand for child labour while presence of adult unemployed proportion in an area reduces demand for child labour. However, presence of unemployed adult in a house increases supply of child labour. Exports, on one hand, reduce supply of child labour by affecting the income of poor at macro level while on the other hand at meso level, subcontracting of production process to small informal sector increases demand for child labour. The informal sector being unprotected by law employs a high proportion of child labour. At micro level mother’s decision making power significantly decreases child labour supply and increases child schooling. The effect is significant in case of girls but not in case of boys. This study also shows that whether children work for generating income or as family helpers, mothers are equally concerned for their welfare. Their decision making power significantly reduces labour among children.

/pdf/economics-of-child-labour-2l7xvudkz9.pdf

Economics of child labour

The role of globalization, real income, tourism in environmental sustainability target. Evidence from Turkey.

Labor market institutions and economic performance

The paper presents a theory of interest rate determination on informal credit in backward agriculture when there is a market for formal credit. The farmer has to bribe the official of the formal credit agency in order to get formal credit. The official and the moneylender play a non-cooperative game in choosing the amount of formal credit and the informal interest rate, respectively. The informal-sector interest rate and the effective formal-sector interest rate (incorporating the bribe) are equal in equilibrium. A reduction in the formal interest rate and/or an increase in the price of the product may lead to an increase in the equilibrium bribing rate and the informal interest rate when the formal credit and the informal credit are complementary to each other.

Formal Credit, Corruption and the Informal Credit Market in Agriculture: a Theoretical Analysis

Fiscal policies, environmental pollution and economic growth

We develop a two-sector dynamic model of a less-developed economy with an imported traded good sector and with a non-traded tourism service sector serving international tourists. Revenue earned fro...

Tourism development, environmental pollution and economic growth: A theoretical analysis

https://www.isid.ac.in/~pu/conference/dec_08_conf/Papers/TrishitaRayBarman.pdf

Health, infrastructure, environment and endogenous growth

Skilled–unskilled wage inequality, nontraded good and endogenous supply of skilled labour: A theoretical analysis

This paper attempts to develop a model of endogenous growth with special consideration to the role of productive public expenditure in the presence of congestion effect of private capital and environmental pollution. We analyze the properties of the optimal fiscal policy in the steady-state equilibrium when the level of production of the final good is the source of emission. Government allocates its income tax revenue between pollution abatement expenditure and productive public expenditure. In the steady-state equilibrium, optimum ratio of productive public expenditure to national income is less than the competitive output share of the public input; and this ratio varies inversely with the magnitude of the emission-output coefficient. The steady-state equilibrium appears to be a saddle point; and the market economy growth rate is not necessarily less than the socially efficient growth rate in the steady-state equilibrium.

Manash Ranjan Gupta

Papers

Fiscal policies, environmental pollution and economic growth

Tourism development, environmental pollution and economic growth: A theoretical analysis

Health, infrastructure, environment and endogenous growth

Skilled–unskilled wage inequality, nontraded good and endogenous supply of skilled labour: A theoretical analysis

Public Expenditure, Environment, and Economic Growth