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Mobility of Capital and Health Sector:A Trade Theoretic Analysis

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  • Chatterjee, Tonmoy
  • Gupta, Kausik

Abstract

In this paper we formulate a three-sector general equilibrium model where two sectors produce final traded goods whereas a third sector produces a non-traded final good. We refer to the third sector as a non-traded final goods producing health sector. In such a set up we have shown that a movement from a regime of international health capital immobility to a regime of international health capital mobility may lead to an expansion of the health sector. Next we have considered a variant of the basic model and we have shown that the output of the health sector must go up in case of international health capital mobility. Finally in the variant of the model we have shown that a movement from a regime of international capital immobility to a regime of international capital mobility may lead to a contraction of the health sector and one of the sectors (either Agricultural or Manufacturing) vanishes.

Suggested Citation

  • Chatterjee, Tonmoy & Gupta, Kausik, 2013. "Mobility of Capital and Health Sector:A Trade Theoretic Analysis," MPRA Paper 48557, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:48557
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. #HEJC papers for September 2013
      by academichealtheconomists in The Academic Health Economists' Blog on 2013-09-01 04:01:38

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    More about this item

    Keywords

    Health sector; International health capital mobility; Vanishing Sector and General Equilibrium.;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • F2 - International Economics - - International Factor Movements and International Business
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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