Trade, FDI and Congestion: the Small and Very Open Economy

Kristof Dascher

Working Papers from College Dublin, Department of Political Economy-

Abstract: Typically, a small and open economy trades goods at given worl prices. Here, we present a model of a very open small economy, where capital and labor are internationally mobile, too. When targeting mobile capital ("FDI"), the economy's government attracts not only mobile capital but mobile labor, also. The paper also asks whether these results carry over to other very open small economies, or, regions.

Keywords: INVESTMENTS; INTERNATIONAL AFFAIRS; REGIONAL DEVELOPMENT; TRADE (search for similar items in EconPapers)
JEL-codes: F11 F23 R23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2000
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Citations: View citations in EconPapers (3)

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Working Paper: Trade, FDI and Congestion - the Small and very Open Economy (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:dublec:00/09

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