Protection and the gainful effects of foreign capital
An increased foreign capital inflow into a protected sector is generally immiserizing. We show that if the protected sector produces an intermediate input, positive welfare effects may emerge. A striking result is that it might lead to an increased import-demand for the intermediate input which is a substitute for the product of the import-competing sector.
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- 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.
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"Foreign Capital and Protectionism,"
Canadian Journal of Economics,
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- J. Peter Neary & Frances P. Ruane, 1984. "International capital mobility, shadow prices and the cost of protection," Working Papers 198432, School of Economics, University College Dublin.
- Neary, J Peter & Ruane, Frances, 1985. "International Capital Mobility, Shadow Prices and the Cost of Protection," CEPR Discussion Papers 58, C.E.P.R. Discussion Papers.
- Chao, Chi-Chur & Yu, Eden S. H., 1994. "Foreign capital inflows and welfare in an economy with imperfect competition," Journal of Development Economics, Elsevier, vol. 45(1), pages 141-154, October. Full references (including those not matched with items on IDEAS)
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