Export Promotion, Sectoral Unemployment and National Welfare
A competitive, general equilibrium model is developed to analyze the effectiveness of export-promotion policy. We show that the employment and welfare effects of Export promotion crucially depend on the foreign import demand elasticity and the Home country's propensity to consume is export commodity. Our result is that export Promotion hurts the economy in the long run but it may improve the short-run welfare under certain plausible conditions. [F11, O38] We are indebted to an anonymous referee for insightful comments. The usual disclaimer applies.
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Volume (Year): 13 (1999)
Issue (Month): 4 ()
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