A general equilibrium analysis of foreign investment and intersectoral linkage

In this paper, we demonstrate that a foreign capital induced growth in a protected sector, which provides an industrial input for agricultural products, may increase welfare even after the entire foreign capital income is repatriated. Such a policy may lead to an increase in the volume of trade along with an increase in the size of the protected sector, quite contrary to the usual perception. The analysed structure also incorporates migration and unemployment.

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Year of publication:	2001
Authors:	Beladi, Hamid ; Marjit, Sugata
Published in:	The Journal of International Trade & Economic Development. - Taylor & Francis Journals, ISSN 0963-8199. - Vol. 9.2001, 2, p. 213-218
Publisher:	Taylor & Francis Journals
Subject:	Foreign Capital \| Growth \| Urban Unemployment

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009219503