Rose, Andrew; Spiegel, Mark - 2009
in the export and import-competing sectors
satisfy y
j
(k), where y
prime
j
> 0andy
primeprime
j
< 0, j = x,m. For …
∗
j
) − (1 + r
∗
)k
∗
j
; j = x,m, l = c,o. (3)
It is easy to show that the return in the export (import-competing) sector …, and define θ ≡ θ
x
as
the measure of the degree to which government utility favors the export sector over the import …