Marjit, Sugata; Broll, Udo; Mitra, Sandip - In: Review of International Economics 5 (1997) 1, pp. 101-06
We argue, in a model with trade and unemployment, that exogenous inflow of foreign capital may deliver the desired result when it flows to a protected intermediate-goods sector. Whether foreign investment should be directed towards an intermediate-goods sector or to a final-goods sector depends...