Export-Processing Zone and the Possibility of Welfare Gain with Foreign Capital Inflow
It is shown in a simple model with 'export-processing zone' that exogenous inflow of foreign capital must increase welfare of an economy importing capital-intensive goods and following protectionary policy. It should also be added that this welfare effect depends on reasonable capital-labour ratio of the export-competing sectors in the country concerned.
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Volume (Year): 35 (2000)
Issue (Month): 2 (July)
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