Domestic Content Protection in a Dynamic Small Open Economy

Tae-Hyung Kim

Canadian Journal of Economics, 1997, vol. 30, issue 2, 429-41

Abstract: In this paper, the long-run macroeconomic effects of content protection policy in a small, open economy within the intertemporal optimizing framework are investigated. With the explicit consideration of labour-leisure choice, together with incorporation of investment and its adjustment costs, the author focuses on the long-run effects on capital accumulation, the current account, and employment, which have been neglected in previous literature. His results show that a more restrictive content protection policy leads to a lower level of the capital stock, an improvement in the current account, and a decrease in employment.

Date: 1997
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