Conference paper
Increased Labour Supply, Foreign Investment and Welfare in the presence of Productive Public Infrastructure
Proceedings of the Australian Conference of Economists, 2005, pp.1-17
Annual Conference of Economists, 34th (Melbourne, Australia, 26-Sep-2005–28-Sep-2005)
Economic Society of Australia Inc.
2005
Abstract
This paper focuses on the impact of an exogenous increase in the supply of labour on foreign investment, public infrastructure and welfare. By making use of a simple general equilibrium model this paper shows that increased supply of labour increases the provision of public infrastructure and hence the domestic wage rate. An increase in the supply of labour leads to an unambiguous increase in foreign investment if public infrastructure is more (or equally) labour intensive as compared to the final good. The size of the increase in wage rate and public infrastructure is affected by the size of the fixed cost associated with infrastructure production. An increase in the supply of labour leads to a larger increase in welfare as long as the public infrastructure is productive and its production involves some fixed cost.
Details
- Title
- Increased Labour Supply, Foreign Investment and Welfare in the presence of Productive Public Infrastructure
- Authors
- Sajid Anwar (Author) - University of Adelaide
- Publication details
- Proceedings of the Australian Conference of Economists, 2005, pp.1-17
- Conference details
- Annual Conference of Economists, 34th (Melbourne, Australia, 26-Sep-2005–28-Sep-2005)
- Publisher
- Economic Society of Australia Inc.
- Date published
- 2005
- ISBN
- 0734026080
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449764402621
- Output Type
- Conference paper
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