A general equilibrium analysis of foreign investment and intersectoral linkage

Hamid Beladi and Sugata Marjit

The Journal of International Trade & Economic Development, 2001, vol. 9, issue 2, 213-218

Abstract: In this paper, we demonstrate that a foreign capital induced growth in a protected sector, which provides an industrial input for agricultural products, may increase welfare even after the entire foreign capital income is repatriated. Such a policy may lead to an increase in the volume of trade along with an increase in the size of the protected sector, quite contrary to the usual perception. The analysed structure also incorporates migration and unemployment.

Keywords: Foreign Capital; Growth; Urban Unemployment (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1080/09638190050028180

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