AN ANALYSIS OF RURAL-URBAN MIGRATION AND PROTECTION

In this paper a Harris-Todaro migration model is developed with the ur ban manufacturing sector supplying a crucial input for the rural secto r. Capital is region specific but flows freely between two urban secto rs. Final goods are traded and have exogenously fixed prices. If this economy imposes a tariff on the import-competing manufacturing sector, employment might go down even if the protected sector is labour inten sive. The paper describes how intersectoral linkages can play a signif icant role in determining the employment effects of a tariff.