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Mixed Ownership, Unemployment, and Welfare for a Developing Economy
Author(s) -
Beladi Hamid,
Chao ChiChur
Publication year - 2006
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2006.00334.x
Subject(s) - unemployment , economics , welfare , labour economics , capital (architecture) , production (economics) , short run , mixed economy , market economy , monetary economics , macroeconomics , archaeology , history
This paper considers the employment and welfare effects of mixed ownership via partial privatization of state‐owned enterprises for a developing economy. An increase in the private ownership lowers the production and, hence, worsens urban unemployment in the short run. However, in the long run, capital moves to the rural region, alleviating the problem of urban unemployment. The employment effect can have a positive contribution to social welfare in the long run.