ABSTRACT
In the tradition of neoclassical economics, it is no surprise that there has been somuch discussion about the role of factor and commodity prices in resource allocation and the choice of techniques in the developing countries. However, our aim isnot togo through the theoretical debateon these issues. Rather we are concerned with the assessment of the empirical literature in this area and even here, we are particularly interested with the role of factor price distortions on employment, though we make a brief excursion into some other implications of factor prices distortions too.
