TITLE

THEOREMS ON IMMISERIZING GROWTH (NORMAL GROWTH) IN THE NON-TRADED GOODS AND WAGE DIFFERENTIALS FRAMEWORK

AUTHOR(S)
Hazari, Bharat R.; Sgro, Pasquale M.
PUB. DATE
January 1975
SOURCE
Southern Economic Journal;Jan75, Vol. 41 Issue 3, p515
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In this paper we have presented theorems on "immiserizing" (normal) growth in the framework of non-traded goods and wage differentials. We have shown that immiserizing growth depends on the direction of the wage differential and the ranking of industries by factor intensities. These theorems should be distinguished from the traditional theorems on "immiserizing growth," which depend on at least one of the following causes: a) an unfavourable movement in the terms of trade offsetting the gain in income from technical progress/factor accumulation,[3] b) a perverse response of output to technical progress and c) the non-tangency between the price line and the shrunken but concave to the origin production possibility locus.[4] The theorems on immiserizing growth reported in this paper do not depend on a or b but on c. However, the underlying locus is necessarily convex rather than concave to the origin.
ACCESSION #
4634251

 

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