In this paper we examine the impact of tied aid on capital accumulation and welfare in the presence of a quota on imports. Using a simulation model we establish that tied aid can lower the relative domestic price of the manufactured good and therefore reduce the stock of capital. In the presence...

A major problem in many developing countries is the degradation of commons. This degradation has occurred on account of the lack of fulfilment of the basic needs of the poor, free riding and ill-defined property rights. As these goods are essential for the survival of these people, they have to...

This paper examines the applicability of Zipf's law to tourism. It is established that a variation of this law holds in this case--a rank-size rule with concavity. Due to this non-linearity, it is shown that a spline regression provides an extremely convenient tool for predicting tourist...

This paper examines the effects of tourism in a dynamic model of trade on unemployment, capital accumulation and resident welfare. A tourism boom improves the terms of trade, increases labor employment, but lowers capital accumulation. The reduction in the capital stock depends on the degree of...

This paper examines the effects of pollution taxes on welfare and environment for a small open economy. In the presence of tourism, pollution taxes provide a double dividend of less pollution and improvements in the tourism terms of trade. The optimal pollution taxes are derived under exogenous...

In recent years a number of papers have examined the impact of inflow of foreign capital on welfare in a trade theoretic model. Two fundamental ques - tions have been raised in this literature. First, what is the welfare impact of foreign capital inflow under a laissez faire regime? Second, what...