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Journal ArticleDOI

Protection and the harmful effects of endogenous capital flows

Ronald W. Jones
- 01 Jan 1984 - 
- Vol. 15, pp 325-330
TLDR
In this article, the authors assume a country has in place a binding tariff, and is a price taker on world markets in which capital is internationally mobile and unimpeded.
About
This article is published in Economics Letters.The article was published on 1984-01-01. It has received 47 citations till now. The article focuses on the topics: Physical capital & Capital intensity.

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Citations
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Journal ArticleDOI

International capital mobility, shadow prices and the cost of protection

TL;DR: In this article, the welfare loss resulting from a uniform increase in tariffs in a competitive small open economy is greater when tariff-induced international factor movements take place than when factors are internationally immobile.
Journal ArticleDOI

Protection and the gainful effects of foreign capital

TL;DR: This article showed that an increased foreign capital inflow into a protected sector is generally immiserizing and showed that if the protected sector produces an intermediate input, positive welfare effects may emerge.
Journal ArticleDOI

Tariffs, quotas, and voluntary export restraints with and without internationally mobile capital

TL;DR: In this article, a general framework for comparing the effects of tariffs, quotas and VERS (voluntary export restraints) both with and without international capital mobility is presented, and it is shown that, although international capital migration raises the welfare cost of tariff protection, it lowers the welfare costs of quantitative restrictions.
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Are wholly foreign-owned enterprises better than joint ventures?

TL;DR: In this paper, a general equilibrium model for examining the individual as well as the joint effects of export requirements and local equity controls of multinational firms is presented. And the results suggest that for a small open economy under tariff protection, the desirable policy is 100% foreign ownership of subsidiaries, coupled with an export-share requirement.
References
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A Three-Factor Model in Theory, Trade and History

TL;DR: In this article, Bhagwati et al. discuss the trade, balance of payments and growth in the Indian economy, and the impact of trade on economic growth. But they do not discuss the role of trade in economic development.
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Tariffs, foreign capital and immiserizing growth

TL;DR: In this article, the authors consider the implications of an inflow of capital from abroad for a small tariff-imposing country, within the standard two-commodity two-factor model of international trade.
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International Capital Movements and the Theory of Tariffs and Trade

TL;DR: In this paper, the optimal tax policy with free trade and optimal tariff policy with mobile capital is presented. But the model is not complete and full optimization and complete specialization is not considered.
Journal ArticleDOI

Ohlin Was Right

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