Foreign Capital and Protectionism

Hamid Beladi and Sugata Marjit

Canadian Journal of Economics, 1992, vol. 25, issue 1, 233-38

Abstract: In terms of a simple model, it is shown that the growth in the export processing zone through an influx of foreign-owned capital reduces welfare for an economy importing capital-intensive goods and following a protectionary policy. Similarly, it follows that growth in the export-processing zone should benefit economies importing labor-intensive goods.

Date: 1992
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