Volume 3, No. 3, December 2004

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Immiserizing Growth in a Developing Economy Export Enclave

Nitesh Saha and John Gilbert

Department of Economics, Utah State University, U.S.A.

Abstract

Using a general equilibrium model of a protected developing economy, we demonstrate that imperfect labor mobility may eliminate the possibility of immiserizing growth from foreign investment in an export enclave by allowing job creation to countervail losses in tariff revenue.

Key words: export enclaves; protection; immiserizing growth
JEL classification: F11; F13; F21; J60

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