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Import Quotas, Foreign Capital and Income Distribution

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  • Yeong-Her Yeh

Abstract

This paper shows that unlike a tariff-induced inflow of foreign capital, an import quota-induced inflow of foreign capital will increase the welfare of the host country. This paper also demonstrates the effects of the capital inflow on the income distribution within the host country. The welfare of the capitalist class will decrease whereas the welfare of the labor class will increase within the host country.

Suggested Citation

  • Yeong-Her Yeh, 1998. "Import Quotas, Foreign Capital and Income Distribution," The American Economist, Sage Publications, vol. 42(1), pages 95-100, March.
    • Handle: RePEc:sae:amerec:v:42:y:1998:i:1:p:95-100
    DOI: 10.1177/056943459804200111
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    References listed on IDEAS

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    1. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    2. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(1), pages 58-73.
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