Migration model of todaro and harris, International Economics

Assignment Help:

Q. The migration model of Todaro and Harris provided an important theoretical critique of the manufacturing-biased import-substitution trade-policy stance. Illustrate.

Answer: The Lewis model provide a rationale for manufacturing-biased import substitution trade policy since the marginal cost of expanding manufactures is close to zero just high enough to induce a worker to migrate from the farm to the city. Though Harris and Todaro identified a significant negative social and economic externality associated with this process namely the problems associated with unplanned and very rapid urbanization combined with rapidly rising expectations of urban migrants.

1483_Migration model of Todaro and Harris.png


Related Discussions:- Migration model of todaro and harris

Process of monetary unification, Q. "Given that labor remains relatively im...

Q. "Given that labor remains relatively immobile within Europe, the European Union's success in liberalizing its capital flows may have worked perversely to worsen the economic sta

Factor - proportions theory of international trade, Q. Why is it that Nort...

Q. Why is it that North-South trade in manufactures look to be consistent with the results or expectations generated by the factor-proportions theory of international trade, where

Economic growth, Q. It is impossible for economic growth in a small countr...

Q. It is impossible for economic growth in a small country to lower that country's economic welfare, regardless of the bias of the growth. Explain. Answer: This is a true st

What are the rationales for interest and currency swaps, Question : (a)...

Question : (a) What are the rationales for interest and currency swaps? (b) Suppose a Swiss firm, SandyCom Ltd, wants to invest in the U.S. The Swiss firm needs US dollars

Ppp theory with regard to the real exchange rates, Q. What are the pr...

Q. What are the predictions of the PPP theory with regard to the real exchange rates? Answer: The real exchange rate among two countries is a broad summary measure of

Discuss effects of ongoing inflation based on ppp theory, Discuss the effec...

Discuss the effects of ongoing inflation based on the PPP theory. Answer:  Other things equivalent money supply growth at a constant rate eventually results in ongoing price le

Lost decade of latin american growth, Q. The 1980s are considered as the "l...

Q. The 1980s are considered as the "lost decade" of Latin American growth. Explain why? Answer: Whilst the Great Depression made it hard for developing countries to make pa

International economics: Theory & policy, In a day of production, firms in ...

In a day of production, firms in angola can produce 200 liters of oil or 10 kilograms of tungsten. Firms in Namibia can produce 160 liters of oil or 60 kilograms of tungsten. Which

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd