Sector specific foreign investment, labour inflow, economies of scale and welfare

dc.contributor.author	Anwar, S.
dc.date.issued	2009
dc.description.abstract	This paper argues that the impact of foreign investment on welfare depends on the sector that attracts the investment and certain characteristics of the economy. It is shown that, as long as the intermediate good is non-traded, foreign investment in a sector that is subject to economies of scale increases welfare by increasing the size of the intermediate good sector. On the other hand, foreign investment in a sector that is subject to constant returns to scale decreases welfare by decreasing the size of the intermediate good sector. The impact of foreign investment (in either sector) on welfare depends on relative factor intensities when the intermediate good is traded.
dc.identifier.citation	Economic Modelling, 2009; 26(3):626-630
dc.identifier.doi	10.1016/j.econmod.2009.01.009
dc.identifier.issn	0264-9993
dc.identifier.uri	https://hdl.handle.net/1959.8/101776
dc.language.iso	en
dc.publisher	Elsevier BV
dc.rights	Copyright 2009 Elsevier B.V.
dc.source.uri	https://doi.org/10.1016/j.econmod.2009.01.009
dc.subject	foreign investment
dc.subject	economics of scale
dc.subject	welfare
dc.title	Sector specific foreign investment, labour inflow, economies of scale and welfare
dc.type	Journal article
pubs.publication-status	Published
ror.mmsid	9915910905601831

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