- 著者
- KAZUNORI OGINO
- 出版者
- JAPANESE ECONOMIC ASSOCIATION
- 雑誌
- The Economic Studies Quarterly (ISSN:0557109X)
- 巻号頁・発行日
- vol.45, no.1, pp.32-40, 1994-03-18 (Released:2008-02-28)
- 参考文献数
- 21
Using the specific-factors model of a competitive small open economy, this paper shows how the standard welfare analysis of capital flows with tariffs and quotas are modified in the presence of unemployment. Employment of labor is endogenously determined and our analysis establishes a departure from the traditional results with full employment. We show several policy implications. Free trade does not necessarily lead to a welfare gain for the country and the optimal policy intervention is considered. This paper derives the conditions under which a capital inflow will help or harm a country in the cases of tariffs and quotas.