دانلود رایگان مقاله تاثیرات بازار کار مناطق زراعی صادرات در حضور بیکاری

ABSTRACT

When foreign firms motivated by higher profits engage in off-shore production activities of unemployment ridden host countries, concerns increase about the possibility of exploitation of local workers. However, using a two good two factor model this paper shows that foreign firms’ engagement under the scenario actually improves the host country's structure of wages, skill composition, employment level and wage inequality which cannot be achieved under full employment in the host countries. This paper thus presents a mechanism that explains the effects of export processing zones observed in most of the transitional economies of the world. Results have practical implications for traditional structural changes expected for these economies. Although foreign firms come to earn profits, it is possible for host country workers to take a part of the rent away from the foreign firms as they are doing currently in different parts of the world.

5. Conclusion

This paper presents a mechanism that explains the changes brought in by offshore area trading or EPZs in China, Vietnam, Sri Lanka, Bangladesh and many other transitional developing economies. The favorable labor market effects of the foreign firms in an export processing zone or an offshore area of a less developed country that have been analyzed in this paper are based on a special assumption described as “highly stylized” in the core model I borrow. The foreign technology requires a skill that though alien to the local workers, may exist in some of them in a dormant form and can be revealed after working in the foreign firms for a while. Foreign firms use this skill together with the local unskilled labor to produce for the world export market and that results in favorable labor market effects. The point that is underscored in this paper is that favorable effects are much broad under unemployment that they are with full employment in the host country.