Foreign Capital and Protectionism
In 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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Volume (Year): 25 (1992)
Issue (Month): 1 (February)
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