Domestic labor, foreign capital and national welfare
The competitive allocation of labor across different sectors of an economy may not be socially optimal when one sector uses foreign capital. We argue that a suitably designed government intervention is required to restrict the sectors to their optimal size and maximize national welfare. Such a policy internalizes the possibility of repatriation and reinvestment. We demonstrate the optimality of a minimum wage regulation.
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- Marjit, Sugata & Broll, Udo & Mitra, Sandip, 1997. "Targeting Sectors for Foreign Capital Inflow in a Small Developing Economy," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 101-06, February.
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- Neary, Peter & Ruane, Frances P, 1988.
"International Capital Mobility, Shadow Prices, and the Cost of Protection,"
International Economic Review,
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- Marjit, Sugata & Beladi, Hamid, 1996.
"Protection and the gainful effects of foreign capital,"
Elsevier, vol. 53(3), pages 311-316, December.
- 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".
- Ronald W. Jones & Sugata Marjit, 1995.
"Labour-Market Aspects of Enclave-Led Growth,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 28(s1), pages 76-93, November.
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- Chao, Chi-Chur & Yu, Eden S H, 1997. "Foreign-Investment Tax and Tariff Policies in Developing Countries," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 47-62, February.
- Hamid Beladi & Sugata Marjit, 1992.
"Foreign Capital and Protectionism,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 25(1), pages 233-38, February.
- 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.
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