Protection and employment: a macroeconomic approach

A Macroeconomic growth model is set forth to distinguish among Keynesian, Marxian and balance of payments constrained unemployment, as well as to clarify the roles of productivity growth, factor substitution and structural disequilibrium in affecting the growth of employment. The model is then used to assess the effects on employment of the typical kind of protection system found in less developed countries. Protection of this sort is found to be inimical to the growth of employment because of adverse influences on productivity, factor proportions, saving and the balance of payments.