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SCOPUS 학술저널

On the Participation of Local Capital in a Foreign Enclave-A General Equilibrium Analysis

On the Participation of Local Capital in a Foreign Enclave-A General Equilibrium Analysis

We provide a general equilibrium analysis of a “joint venture between local and foreign capitalists in an export sector of a small economy. When, due to political reasons, the local government is unable to alter the tariff rates drastically, promoting such joint-ventures improves national welfare. Our results obtained earlier in a “full employment context continue to hold in a model with unemployment.

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