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MEASUREMENT OF THE GAINS FROM FOREIGN OWNED CAPITAL - The Canadian Case

Author

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  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

Abstract

The main body of theory concerning international investment has dealt primarily with the derivation of the conditions under which it is necessary to either subsidize or tax traded goods and foreign investment in order to obtain the optimum level of foreign investment for the welfare maximization of either the host or lending country. Using the two sector, two country model where only one factor is mobile but both goods are traded, a number researches have concluded that under competitive conditions, capital-rich countries tie up too great a proportion of their resources in foreign ventures. This paper considers this issue in a world where there is taxation in the host and in the home country of the foreign investor.

Suggested Citation

  • Glenn Jenkins, 1972. "MEASUREMENT OF THE GAINS FROM FOREIGN OWNED CAPITAL - The Canadian Case," Development Discussion Papers 1972-01, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:5
    as

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    References listed on IDEAS

    as
    1. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    2. G. D. A. MacDougall, 1960. "THE BENEFITS and COSTS OF PRIVATE INVESTMENT FROM ABROAD: A THEORETICAL APPROACH," The Economic Record, The Economic Society of Australia, vol. 36(73), pages 13-35, March.
    3. Flatters, Frank, 1972. "Commodity Price Equalization: A Note on Factor Mobility and Trade," American Economic Review, American Economic Association, vol. 62(3), pages 442-476, June.
    4. Ronald W. Jones, 1967. "International Capital Movements and the Theory of Tariffs and Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 81(1), pages 1-38.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic gains; foreign owed capital; Canada;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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