Financial Advantage, Outsourcing and FDI under Wage Uncertainty

Jai Young Choi and E Kwan Choi
Authors registered in the RePEc Author Service: Eun Kwan Choi

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper investigates the role of infrastructure aid to developing countries in a 3x2 model with two traded goods and a nontraded good, with the focus of analysis placed on the effects on real national income and the Dutch disease effect. It is shown that for a recipient country, infrastructure aid to the traded good sectors is necessarily welfare-enhancing but infrastructure aid to the nontraded sector is welfare-neutral. Output effects of infrastructure aid depend on factor substitution, relative factor-saving effect, and the output response of the nontraded good. The effects on factor and nontraded good prices are also analyzed.

Keywords: outsourcing; foreign direct investment (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in North American Journal of Economics and Finance, January 2013, vol. 24 no. 1, pp. 260-267

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Related works:
Journal Article: Financial advantage, outsourcing and FDI under wage uncertainty (2013)
Working Paper: Financial Advantage, Outsourcing and FDI Under Wage Uncertainity (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:37376

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