Attitudes towards foreign products and welfare with capital mobility

J.M. Callois and Carl Gaigne
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J.M. Callois: UMR METAFORT - Mutations des activités des espaces et des formes d'organisation dans les territoires ruraux - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CEMAGREF - Centre national du machinisme agricole, du génie rural, des eaux et forêts - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement

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Abstract: We develop a model of trade with imperfect competition to study the welfare implications in developing and developed countries of the asymmetry in attitudes towards foreign products. In the developed country, consumers benefit from a better perception of foreign products while the rental rate of capital declines as long as the location of capital remains unchanged. However, when capital is mobile, the developing country hosts more and more capital at the expense of the developed country as perception of varieties produced in the developed country improves and the surplus of consumers in the developed country can decrease.

Keywords: CAPITAL; CONSOMMATEUR; ECONOMIE; MODELE; PERCEPTION SOCIALE; CAPITAL LOCATION; CONSUMER'S SURPLUS; PRODUCT OF ORIGIN; PRODUIT D'ORIGINE (search for similar items in EconPapers)
Date: 2010
Note: View the original document on HAL open archive server: https://hal.science/hal-00546541v1
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Published in Open Economies Review, 2010, 21 (5), 26 p. ⟨10.1007/s11079-009-9115-y⟩

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Related works:
Journal Article: Attitudes Towards Foreign Products and Welfare with Capital Mobility (2010)
Working Paper: Attitudes towards foreign products and welfare with capital mobility (2009)
Working Paper: Attitudes towards foreign products and welfare with capital mobility (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00546541

DOI: 10.1007/s11079-009-9115-y

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