Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy
We argue, in a model with trade and unemployment, that exogenous inflow of foreign capital may deliver the desired result when it flows to a protected intermediate-goods sector. Whether foreign investment should be directed towards an intermediate-goods sector or to a final-goods sector depends on the technological specifications of either type of goods as well as on the existing set of trade policies. Copyright 1997 by Blackwell Publishing Ltd.
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Volume (Year): 5 (1997)
Issue (Month): 1 (February)
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