A three-sector general equilibrium model is developed to examine the resource allocation and welfare effects of domestic content protection. An increase in domestic content requirements lowers the urban unemployment ratio, the production of the domestic intermediate good, the import of the...

In this paper, the authors develop a model to analyze the effects of export-share requirements when a quota is in place. They show that, when foreign capital is located in specific economic activity zones identified with the importable sector, an increase in export-share requirements reduces...

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 short- and long-run effects of partial trade liberalization through relaxation of quantity restrictions in an oligopolistically competitive economy with unemployment. While the short-run effects of the liberalization policy are ambiguous, its long-run impacts are clear:...

Aid conditional on the purchase of an imported capital good increases the supply of, and demand for, the good. Examining the effects of tied aid on capital accumulation, the current account, and welfare, we find that two resultant conflicting forces render the price of the capital good...