International capital mobility, shadow prices and the cost of protection

J. Peter Neary and Frances Ruane ()

No 198432, Working Papers from School of Economics, University College Dublin

Abstract: This paper studies the welfare losses from tariff protection in a general model of a small open economy where some factors are internationally mobile. It is show that, as long as the economy remains incompletely specialised, international factor mobility must raise the cost of protection. This result is illustrated in the context of the specific-factors and Heckscher-Ohlin models. In addition, its relationship to earlier work on immiserising captial inflows on negative shadow prices for factors of production is examined, which allows us to synthesise a number of recent results within a common framework.

Keywords: Capital movements; Heckscher-Ohlin-Samuelson model; International trade (search for similar items in EconPapers)
Date: 1984-12
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http://hdl.handle.net/10197/1941 First version, 1984 (application/pdf)

Related works:
Journal Article: International Capital Mobility, Shadow Prices, and the Cost of Protection (1988)
Working Paper: International Capital Mobility, Shadow Prices and the Cost of Protection (1985)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:198432

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