Foreign Capital Inflow, Non-Traded Intermediary, Urban Unemployment And Welfare In A Small Open Economy: A Theoretical Analysis
AbstractThe paper attempts to analyze the implications of foreign capital inflow in a small open economy with a non-traded intermediary on the welfare and urban unemployment in a three- sector Harris-Todaro (1970) framework. The standard immiserizing result of a foreign capital inflow has been found to be valid when the non-traded intermediary is solely used in the protected import-competing sector. However, if the export sector too uses the intermediary the economy may experience an improvement in its welfare and a reduction in the urban unemployment level.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0511008.
Length: 11 pages
Date of creation: 11 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 11
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Non-traded intermediary; Foreign capital; Welfare; Urban unemployment; Protected import-competing sector; Export sector;
Other versions of this item:
- Sarbajit Chaudhuri, 2001. "Foreign Capital Inflow, Non-traded Intermediary, Urban Unemployment, and Welfare in a Small Open Economy: A Theoretical Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(3), pages 225-235.
- F2 - International Economics - - International Factor Movements and International Business
- F20 - International Economics - - International Factor Movements and International Business - - - General
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-19 (All new papers)
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