Environment, Urban Unemployment, and Tariffs in the Harris–Todaro Model. Issue 3 (17th July 2013)

• Record Type: Journal Article
• Authors: Nakamura, Azusa
• Is Part Of: Review of development economics. Volume 17:Issue 3(2013:Aug.)
• Page Start: 585
• Page End: 593
• Publication Date: 2013-07-17
• Subjects: Economic development -- Periodicals; 330
• DOI: 10.1111/rode.12052
• Languages: English
• ISSNs: 1363-6669

Abstract

Abstract: By incorporating the environment into the Harris–Todaro model, this paper examines how introduction of an import tariff on manufactured goods affects urban unemployment and the environment in a less‐developed country. In the Harris–Todaro model, introduction of an import tariff increases urban unemployment when there is no environmental pollution. In contrast, this paper shows that introduction of a tariff may decrease unemployment if the environment is incorporated into the model. Moreover, it is shown that introduction of a tariff improves the environment.