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A Model of Welfare Enhancing Capital Imports
Author(s) -
Oda Masao,
Shimomura Koji
Publication year - 2012
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2012.01051.x
Subject(s) - economics , welfare , capital (architecture) , pessimism , foreign capital , international economics , monetary economics , macroeconomics , microeconomics , market economy , foreign direct investment , philosophy , archaeology , epistemology , history
This paper proposes a model of welfare enhancing capital imports in a multi‐dimensional framework. Contrary to the pessimistic conventional wisdom of capital imports and welfare, a justification is provided for the acceptance of foreign capital in developing countries.