When a country experiences economic growth, its production capacity increases, i.e., its production of exportable and importable increases. If the increase of both goods leads to more export and less import, and lower welfare level, growth is immiserizing. This paper proves that Jagdish...

When a country experiences economic growth, its export increases, leading to a lower export price. Bhagwati regarded the lower price as immiserizing. He also needed a higher import price to complete his theory, but his lower import demand should lead, contradictorily, to a lower import price....

This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare, which is an important but yet unresolved issue. Using the well-known Harris-Todaro (1970) model of sector-specific unemployment, it shows that the effects of outsourcing on...

Based on a neoclassical growth model for open low income economies this paper shows that development strategies, which rely on net borrowing abroad lead to a position of sustainable foreign indebtedness (provided that all capital imports are used for investment financing), but turn out to be...

Will smart machines do to humans what the internal combustion engine did to horses – make them obsolete? If so, can putting people out of work or, at least, good work leave them unable to buy what smart machines produce? Our model's answer is yes. Over time and under the right conditions,...