A model shows foreign capital inflow increases welfare in economies with protectionist policies, suggesting benefits of export-processing zones.
It is shown in a simple model with 'export-processing zone' that exogenous inflow of foreign capital must increase welfare of an economy importing capital-intensive goods and following protectionary policy. It should also be added that this welfare effect depends on reasonable capital-labour ratio of the export-competing sectors in the country concerned.
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オハラ et al. (2003) studied this question.
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