This paper examines the welfare consequences of a unilateral transfer for both the transfer-paying a nd the transfer-receiving country in which the production functions a re subject to variable returns to scale. The authors obtain the condi tions for the strong paradox, i.e., the welfare of the...

This paper investigates the analytical implications of partially mobile capital among sectors arising in the context of the two-sector general-equilibrium Harris-Todaro (HT) model. It is shown that under partially mobile capital, unlike the case of totally mobile or immobile capital, labor...

This paper shows that, in the 2 × 3 sector-specific capital Harris-Todaro model, capital growth owing to either domestic or foreign investment always enhances the welfare of the country (i.e. non-immiserizing), and this result of non-immiserizing foreign investment holds regardless of...

This paper investigates the role of infrastructure aid to developing countries in a 3x2 model with two traded goods and a nontraded good, with the focus of analysis placed on the effects on real national income and the Dutch disease effect.  It is shown that for a recipient country,...

This paper investigates the role of infrastructure aid to developing countries beset with unemployment. Since unemployment persists in most developing countries with chronic foreign debts, the impact of infrastructure aid is analyzed using an extended Harris-Todaro model with two traded good...

This article examines the implications of international outsourcing in the Heckscher-Ohlin model of general equilibrium by explicitly expounding the external effects to the outsourcing firms. With its focus paced on the labor-augmenting effect of outsourcing, it shows that (a) the standard...