Foreign Capital and Protectionism
AbstractIn terms of a simple model, it is shown that the growth in the export processing zone through an influx of foreign-owned capital reduces welfare for an economy importing capital-intensive goods and following a protectionary policy. Similarly, it follows that growth in the export-processing zone should benefit economies importing labor-intensive goods.
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Bibliographic InfoPaper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 310.
Length: 11 pages
Date of creation: 1992
Date of revision:
Contact details of provider:
Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.
growth rate ; government policy ; exports ; welfare economics;
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