Export-Processing Zone and the Possibility of Welfare Gain with Foreign Capital Inflow

It is shown in a simple model with 'export-processing zone' that exogenous inflow of foreign capital must increase welfare of an economy importing capital-intensive goods and following protectionary policy. It should also be added that this welfare effect depends on reasonable capital-labour ratio of the export-competing sectors in the country concerned.

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Year of publication:	2000
Authors:	Ohara, Kazuhiro
Published in:	Indian Economic Review. - Department of Economics. - Vol. 35.2000, July, 2, p. 211-215
Publisher:	Department of Economics

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Type of publication:	Article
Classification:	F10 - Trade. General ; F21 - International Investment; Long-Term Capital Movements
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005582857