FOREIGN-CAPITAL INFLOWS AND WELFARE IN AN ECONOMY WITH IMPERFECT COMPETITION

• 成果类型: Note
• 署名作者: CHAO, CC; YU, ESH
• 署名单位: Louisiana State University System; Louisiana State University; Chinese University of Hong Kong; Oregon State University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/0304-3878(94)90064-7
• 发表日期: 1994
• 页码: 141-154
• 关键词: INTERNATIONAL CAPITAL MOBILITY; imperfect competition; welfare

摘要

This paper examines the resource allocational and welfare effects of exogenous inflows of foreign capital in a general-equilibrium model with oligopolistic competition and unemployment. Although the welfare impact for the short run is ambiguous and dependent upon the strength of excess profits and scale economies relative to unemployment in manufacturing, in the long run additional inflows of foreign capital always improve national welfare with capital mobility. Hence, attracting foreign capital remains a sound policy for economies characterized by imperfect competition, scale economies, and regional unemployment.