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Title: |
On the Impossibility of Immiserizing Growth |
| Author: |
Miyagiwa, Kaz |
| Author
Affiliation: |
U WA |
| Source: |
International Economic Journal, Summer 1993, v. 7, no. 2, pp. 1-13 |
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Publication Date: |
Summer 1993 |
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Abstract: |
This paper examines the welfare effect of
economic growth for a small country which restricts international trade
within the Ricardo-Viner model. We find immiserizing growth impossible
under quantity restrictions regardless of sector-specificity of capital
and nationality of ownership. Furthermore, we find that when quantity
restrictions on imports cannot be altered the (second-best) optimal rate
of tax on foreign capital is zero. The implications of this result,
which contrasts with that of Brecher and Findlay, are discussed. |
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