Raw Materials, Processing Incentives And Foreign Ownership
The effect of foreign ownership on trade policy outcomes has long been a topic of interest, but only recently have the consequences of multiple levels of production been considered. We examine processing incentives in a simplified general equilibrium framework with foreign ownership of a primary factor. Second-best considerations mean non-intervention is sub-optimal, but multiple levels of production can lead to an investment terms-of-trade effect of indeterminate sign, depending critically on the production structure. We illustrate how this may change standard conclusions regarding the effect of trade restrictions where there is foreign ownership, and optimal intervention to achieve specific policy objectives.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Beladi, H. & Marjit, S., 1992.
"Foreign Capital and Protectionism,"
RCER Working Papers
310, University of Rochester - Center for Economic Research (RCER).
- J. N. Bhagwati & R. A. Brecher, 1979.
"Foreign Ownership and the Theory of Trade and Welfare,"
249, Massachusetts Institute of Technology (MIT), Department of Economics.
- Brecher, Richard A & Bhagwati, Jagdish N, 1981. "Foreign Ownership and the Theory of Trade and Welfare," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 497-511, June.
- Marjit, Sugata & Beladi, Seyed Abdolhamid, 1997.
"Protection and the gainful effects of foreign capital,"
Discussion Papers, Series II
334, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Marjit, Sugata & Beladi, Hamid, 1996. "Protection and the gainful effects of foreign capital," Economics Letters, Elsevier, vol. 53(3), pages 311-316, December.
- Bhagwati, Jagdish N. & Brecher, Richard A., 1980.
"National welfare in an open economy in the presence of foreign-owned factors of production,"
Journal of International Economics,
Elsevier, vol. 10(1), pages 103-115, February.
- J. Bhagwati & R. Brecher, 1978. "National Welfare in an Open Economy in the Presence of Foreign Owned Factors of Production," Working papers 224, Massachusetts Institute of Technology (MIT), Department of Economics.
- Huizinga, H. & Nielsen, S.B., 1995.
"Capital Income and Profits Taxation with Foreign Ownership of Firms,"
9582, Tilburg - Center for Economic Research.
- Huizinga, Harry & Nielsen, Soren Bo, 1997. "Capital income and profit taxation with foreign ownership of firms," Journal of International Economics, Elsevier, vol. 42(1-2), pages 149-165, February.
- Huizinga, H.P. & Nielsen, S.B., 1997. "Capital income and profit taxation with foreign ownership of firms," Other publications TiSEM b4f6a916-7f7f-4fe1-9cf0-c, Tilburg University, School of Economics and Management.
- Harry Huizinga & Soeren Bo Nielsen, . "Capital Income and Profits Taxation with Foreign Ownerwhip of Firms," EPRU Working Paper Series 95-09, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Huizinga, H.P. & Nielsen, S.B., 1995. "Capital income and profits taxation with foreign ownership of firms," Discussion Paper 1995-82, Tilburg University, Center for Economic Research.
- Ronald W. Jones & Barbara J. Spencer, 1989.
"Raw Materials, Processing Activities, and Protectionism,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 22(3), pages 469-86, August.
- Jones, R.W. & Spencer, B.J., 1988. "Raw Materials, Processing Activities And Protectionism," RCER Working Papers 156, University of Rochester - Center for Economic Research (RCER).
- Brecher, Richard A. & Findlay, Ronald, 1983. "Tariffs, foreign capital and national welfare with sector-specific factors," Journal of International Economics, Elsevier, vol. 14(3-4), pages 277-288, May.
- David F. Burgess, 1976. "The Income Distributional Effects of Processing Incentives: A General Equilibrium Analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 9(4), pages 595-612, November.
- Bhagwati, Jagdish N. & Tironi, Ernesto, 1980. "Tariff change, foreign capital and immiserization : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 7(1), pages 71-83, February.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea00:21866. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.