Protection and the gainful effects of foreign capital

Sugata Marjit and Seyed Abdolhamid Beladi

No 334, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: An increased foreign capital inflow into a protected sector is generally immiserizing. We show that if the protected sector produces an intermediate input, positive welfare effects may emerge. A striking result is that it might lead to an increased import-demand for the intermediate input which is a substitute for the product of the import-competing sector.

Keywords: Exogenous capital; welfare (search for similar items in EconPapers)
JEL-codes: F20 F21 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (6)

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Journal Article: Protection and the gainful effects of foreign capital (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kondp2:334

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