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Title: |
On the New Export Sector in Developing Countries |
| Author: |
Masao Oda, Robert Stapp, and Ichiro Mihara |
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Affiliation: |
Kansai University, Japan; University of Arkansas, USA; University of Arkansas, USA |
| Source: |
International Economic Journal, December 2005, v. 19, no. 4, pp. 579-587 |
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Publication Date: |
December 2005 |
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Abstract: |
Many developing countries are establishing a new export sector by accepting foreign direct investment. Developing a three sectors three factors general equilibrium model with tariff, this paper considers the condition under which the acceptance of direct investment is desirable for the developing countries. We show that the factor intensity rankings among the sectors play a key role on the welfare effects and that direct investment increases the output of both new export and traditional export sector and promotes the export-led growth in developing countries. |
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