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This paper studies an intertemporal model of protection and environmental policy in a small trading developing nation (DN). The DN government protects the polluting and the import competing sector of the economy with a tariff. The output and employment effects of three pollution taxes are...
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In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the...
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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...
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