This paper reviews the insulation properties of a dual exchange rat e regime. It is shown that, in general, a dual regime is not successful in insulatin g the economy from monetary and real shocks of domestic and foreign origin. The existence of incomplete segmentation of markets, as well as the...

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant-returns-to-scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare-decreasing under CRS...

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant‐returns‐to‐scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare‐decreasing under CRS...