Abstract
This paper examines how economic growth can affect various political actors and influence trade and labor policies in a developing economy. The paper extends the Findlay-Wellisz (1982) model of endogenous trade policy to include the endogenous determination of an urban-rural wage differential along lines suggestive of the Harris-Todaro (1970) model. Under assumptions normally associated with developing economies, the model shows that growth, stimulated primarily by capital formation, can lead to the rise of protectionism and urban unrest.
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Schwalbenberg, H.M. Economic growth and the rise of protectionism and urban unrest in developing economies. Open Econ Rev 5, 65–88 (1994). https://doi.org/10.1007/BF01000745
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DOI: https://doi.org/10.1007/BF01000745