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• 1. [Article] The role of employment in dualistic economic development models

  Traditionally employment and output have been the major two criteria for evaluating aggregate performance in a dual economic model for less developed countries. This has been mainly discussed by transferring ...

  Citation × Citation Citation Abstract Copy Title: The role of employment in dualistic economic development models Author: Shadman-Valavi, Mohammad Traditionally employment and output have been the major two criteria for evaluating aggregate performance in a dual economic model for less developed countries. This has been mainly discussed by transferring labor from the agricultural sector to non-agricultural use. Most models are specified in such a manner that the migrated agricultural workers will be absorbed in non-agricultural jobs. In reality though, the transformation of labor to the non-agricultural sector (i. e., industrial or urban) has created an unemployment problem in that sector. The purposes of this paper are (1) to study some of the relevant common characteristics of less developed countries, (2) to review the literature related to labor employment, and (3) to demonstrate the importance of the efficiency of employment and output in dualistic development models. This paper has reviewed three classes of models. First, this study has considered the Fei-Ranis model of economic development which has drawn heavily from W. A. Lewis’s model of economic development with unlimited supplies of labor (Fei-Ranis is primarily a classical model). Second, the Jorgenson’s model of development of a dual economy has been presented. This model is based on Harrod-Domar's concept of steady growth, Third, this study looks at a more recent model, the Todaro model, which considered the practical problem of urban (industrial) unemployment. The problem of urban-unemployment is not considered by the first two models. Todaro's approach to the development of a dual economy may be the beginning of a new trend in the literature. On the basis of findings of this work it was concluded that: (1) The transformation of an agricultural surplus labor economy to an industrial surplus labor economy, can only be justified by a careful consideration of the production possibilities of each case, and the demand for the products of each sector. (2) The rate of growth of each sector will be dictated by the optimum growth path. This is the locus of optimum combination of output and employment of resources in each sector in the given time period. Because production possibilities and demand considerations operate to determine the optimum growth path, this path will rarely if ever coincide with the straight-line balanced growth path prominent in the Fei-Ranis model. Title: The role of employment in dualistic economic development models Author: Shadman-Valavi, Mohammad Traditionally employment and output have been the major two criteria for evaluating aggregate performance in a dual economic model for less developed countries. This has been mainly discussed by transferring labor from the agricultural sector to non-agricultural use. Most models are specified in such a manner that the migrated agricultural workers will be absorbed in non-agricultural jobs. In reality though, the transformation of labor to the non-agricultural sector (i. e., industrial or urban) has created an unemployment problem in that sector. The purposes of this paper are (1) to study some of the relevant common characteristics of less developed countries, (2) to review the literature related to labor employment, and (3) to demonstrate the importance of the efficiency of employment and output in dualistic development models. This paper has reviewed three classes of models. First, this study has considered the Fei-Ranis model of economic development which has drawn heavily from W. A. Lewis’s model of economic development with unlimited supplies of labor (Fei-Ranis is primarily a classical model). Second, the Jorgenson’s model of development of a dual economy has been presented. This model is based on Harrod-Domar's concept of steady growth, Third, this study looks at a more recent model, the Todaro model, which considered the practical problem of urban (industrial) unemployment. The problem of urban-unemployment is not considered by the first two models. Todaro's approach to the development of a dual economy may be the beginning of a new trend in the literature. On the basis of findings of this work it was concluded that: (1) The transformation of an agricultural surplus labor economy to an industrial surplus labor economy, can only be justified by a careful consideration of the production possibilities of each case, and the demand for the products of each sector. (2) The rate of growth of each sector will be dictated by the optimum growth path. This is the locus of optimum combination of output and employment of resources in each sector in the given time period. Because production possibilities and demand considerations operate to determine the optimum growth path, this path will rarely if ever coincide with the straight-line balanced growth path prominent in the Fei-Ranis model. Close

• 2. [Article] Essays on environment and the spatial distribution of economic activities

  Environmental quality and the spatial distribution of economic activities affect each other in many ways. The primary purpose of this dissertation is to contribute to understanding the complex interrelationship ...

  Citation × Citation Citation Abstract Copy Title: Essays on environment and the spatial distribution of economic activities Author: Wang, Chunhua Environmental quality and the spatial distribution of economic activities affect each other in many ways. The primary purpose of this dissertation is to contribute to understanding the complex interrelationship and its policy implications. This dissertation consists of three essays. The first essay examines the roles that locational amenities and increasing returns to scale play in the formation of urban development patterns and regional economic growth. The spatial distribution of amenities is shown to be a major determinant; and the effects of amenities are reinforced by external scale economies and localized information spillovers, both of which promote agglomeration and human capital accumulation. Workers in amenity locations are more productive because of increasing returns, which encourage investment on human capital development. The decentralized equilibrium is not optimal because of the externalities associated with human capital investments. The efficiency can be improved by public policies encouraging human capital investments. Such policies also increase the number and size of cities and the pace of urbanization and economic growth. The second essay examines the effects of natural disasters on population growth across U.S. counties during the period of 1960-2000. Results suggest that except earthquakes and most serious hurricanes, the risks of natural disasters have no statistically significant effects on population growth. We also estimate the effects of natural disasters on county socioeconomic and demographic characteristics, including human capital, age and ethnic composition of population, industrial composition, and income inequality, which correlate with county population growth. The insignificance of those effects indicates that natural disasters have no indirect effects on population growth, either. The third essay considers the roles of mandatory building codes for regulating land development in a natural disaster-prone area as self-insurance and self-protection. To find the optimal building codes, a simple urban economics model is constructed for the analysis. A number of comparative statics results are presented to describe how optimal building codes are affected by the endowed probability of the disaster, the expected loss, productivity levels of self-insurance and self-protection, and socioeconomic characteristics of the area such as wage, population, and the share of land area in the risky region. Title: Essays on environment and the spatial distribution of economic activities Author: Wang, Chunhua Environmental quality and the spatial distribution of economic activities affect each other in many ways. The primary purpose of this dissertation is to contribute to understanding the complex interrelationship and its policy implications. This dissertation consists of three essays. The first essay examines the roles that locational amenities and increasing returns to scale play in the formation of urban development patterns and regional economic growth. The spatial distribution of amenities is shown to be a major determinant; and the effects of amenities are reinforced by external scale economies and localized information spillovers, both of which promote agglomeration and human capital accumulation. Workers in amenity locations are more productive because of increasing returns, which encourage investment on human capital development. The decentralized equilibrium is not optimal because of the externalities associated with human capital investments. The efficiency can be improved by public policies encouraging human capital investments. Such policies also increase the number and size of cities and the pace of urbanization and economic growth. The second essay examines the effects of natural disasters on population growth across U.S. counties during the period of 1960-2000. Results suggest that except earthquakes and most serious hurricanes, the risks of natural disasters have no statistically significant effects on population growth. We also estimate the effects of natural disasters on county socioeconomic and demographic characteristics, including human capital, age and ethnic composition of population, industrial composition, and income inequality, which correlate with county population growth. The insignificance of those effects indicates that natural disasters have no indirect effects on population growth, either. The third essay considers the roles of mandatory building codes for regulating land development in a natural disaster-prone area as self-insurance and self-protection. To find the optimal building codes, a simple urban economics model is constructed for the analysis. A number of comparative statics results are presented to describe how optimal building codes are affected by the endowed probability of the disaster, the expected loss, productivity levels of self-insurance and self-protection, and socioeconomic characteristics of the area such as wage, population, and the share of land area in the risky region. Close