|
To discuss the economic effects of host-country under the
condition of the tariffied capital intensive goods and hte
capital inflows, the paperassumes that the exports-sector is a
monopolistic competition department,and develops a general
equilibrium model. With
the constant tariff, Breacher and Alejandro (1977) demonstated
thatthe insufficient capital inflow lasts the host-country's
needs to import the capital intensive goods, and it will reduce
the host-country's welfare, The result of this thesis is
basically in agreement with their conclusion. On the other
side, they considered that the sufficient capital inflow
causes the host-country's capability of producing the capital
intensive goods and stops importing the capital intensive
goods. Then it will improve the host-country's welfare.
Nevertheless, this thesis examines the results is ambiguous,
because this result depends on the effects of income and price.
Futhermore, with tariff-induced capital inflow, this paper
explores the economic effects of host-country. Jones
(1984) pointed out that tariff-induced capital inflow
will reduce the host country's welfare.Besides, Yabuuchi
(1990) supposed that the import (export) sector is in
thepresence of constant returns to scale (increasing returns
to scale), and stated the same conclusion. However, this thesis
analyzes this result is not for sure, because this result is
also affected by the relative effects of factor-income,
tariff-income, and tariffed net-price.
|