Inward‐looking policies, finite change, and employment: The capital reallocation effect

Sugata Marjit and Kausik Gupta

International Journal of Economic Theory, 2023, vol. 19, issue 1, 62-76

Abstract: It is well recognized that there emerged a trend of inward‐looking trade policies even before the COVID pandemic crippled the world. These were reflected in both BREXIT and US‐China trade conflicts. As countries become inward‐oriented, usually local prices start rising. With this backdrop, this paper explores how rising local prices are likely to affect employment in the short and long runs when we accommodate for the finite change in a general equilibrium structure whereby sectors not only contract but might also close down altogether due to the capital reallocation effect following a price incentive.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ijet.12335

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:19:y:2023:i:1:p:62-76

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().