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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Year of publication:	1997
Authors:	Marjit, Sugata ; Beladi, Seyed Abdolhamid
Institutions:	Fachbereich Wirtschaftswissenschaften, Universität Konstanz
Subject:	Exogenous capital \| welfare

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Extent:	application/pdf
Series:	Discussion Papers, Series II.
Type of publication:	Book / Working Paper
Notes:	Number 334
Classification:	F20 - International Factor Movements and International Business. General ; F21 - International Investment; Long-Term Capital Movements
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010958315