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International Trade and Foreign Investment.A Model with Asymmetric Production

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  • M ALl KHAN

    (Cornell University)

Abstract

We present a two-country model of trade and investment in which the output of one country is used as an intermediate input in the other country. Our work extends and qualifies recent work of Kemp and Ohyama and also has a bearing on the theory of foreign investment with sector-specific capital.

Suggested Citation

  • M ALl KHAN, 1984. "International Trade and Foreign Investment.A Model with Asymmetric Production," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 23(4), pages 509-530.
    • Handle: RePEc:pid:journl:v:23:y:1984:i:4:p:509-530
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    File URL: http://www.pide.org.pk/pdf/PDR/1984/Volume4/509-530.pdf
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    References listed on IDEAS

    as
    1. Brecher, Richard A., 1983. "Second-best policy for international trade and investment," Journal of International Economics, Elsevier, vol. 14(3-4), pages 313-320, May.
    2. Kemp, Murray C & Nagishi, Takashi, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1011-1013, Nov./Dec..
    3. Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
    4. Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1005-1010, Nov./Dec..
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    Cited by:

    1. Taro Abe, 2005. "The Northern Immigration Policy in a North-South Economy Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(2), pages 197-218.
    2. Beladi, Hamid & Chau, Nancy H. & Ali Khan, M., 2000. "North-South Investment Flows and Optimal Environmental Policies," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 275-296, November.

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