Arbeitspapier

Foreign capital inflow and its welfare implications in a developing country context

In a small open developing country context, the author considers a three-sector general equilibrium framework and tries to find out the effects of foreign capital inflow on welfare of the country. Comparative-static results show that foreign capital inflow widens the skilled-unskilled wage gap under some reasonable conditions, although it causes an expansion of the foreign enclave and the agricultural sector and contraction of the domestic manufacturing sector. Taking sector specific foreign capital, the author finds that foreign direct investment is beneficial in a small open economy in the absence of tariffs.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2017-1

Klassifikation
Wirtschaft
General Equilibrium and Disequilibrium: General
Welfare Economics: General
Economic Impacts of Globalization: Economic Development
Macroeconomic Analyses of Economic Development
Thema
foreign capital
small open economy
welfare
tariff
economic development

Ereignis
Geistige Schöpfung
(wer)
Mukherjee, Rudrarup
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Mukherjee, Rudrarup
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2017

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