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Protection and the Shadow Price of Foreign Exchange with Increasing Returns and International Capital Mobility

Author

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  • Vandana Chandra
  • Nadeem Naqvi

Abstract

In an economy with an external increasing returns technology and a convex production set, international capital mobility reduces the shadow price of foreign exchange if quotas or voluntary export restraints are in force, but leaves this shadow price unaltered if tariffs are in place.

Suggested Citation

  • Vandana Chandra & Nadeem Naqvi, 1997. "Protection and the Shadow Price of Foreign Exchange with Increasing Returns and International Capital Mobility," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 959-967, November.
  • Handle: RePEc:cje:issued:v:30:y:1997:i:4:p:959-67
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    Cited by:

    1. Mamit Deme & David Franck & Nadeem Naqvi, 2005. "A General Equilibrium Skill Acquisitions Model Of Development For Lesotho," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 15-29, June.
    2. David Franck & Nadeem Naqvi, 2000. "LDCs, International Capital Mobility and the Shadow Price of Foreign Exchange under Tariffs and Quantitative Restrictions," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(2), pages 43-54, December.
    3. Henrik Egbert & Nadeem Naqvi, 2011. "Market-dependent Production Set," MAGKS Papers on Economics 201145, Philipps-Universit├Ąt Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Anil Lal, 2001. "Goods and factors liberalization under increasing returns to scale," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(2), pages 115-131.

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