Export-Processing Zone and the Possibility of Welfare Gain with Foreign Capital Inflow

Kazuhiro Ohara
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Kazuhiro Ohara: Graduate School of Economics, Kobe University of Commerce

Indian Economic Review, 2000, vol. 35, issue 2, 211-215

Abstract: It is shown in a simple model with 'export-processing zone' that exogenous inflow of foreign capital must increase welfare of an economy importing capital-intensive goods and following protectionary policy. It should also be added that this welfare effect depends on reasonable capital-labour ratio of the export-competing sectors in the country concerned.

JEL-codes: F10 F21 (search for similar items in EconPapers)
Date: 2000
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