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On the new export sector in developing countries

Author

Listed:
  • Masao Oda
  • Robert Stapp
  • Ichiro Mihara

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 the new export and the traditional export sector and promotes the export-led growth in developing countries.

Suggested Citation

  • Masao Oda & Robert Stapp & Ichiro Mihara, 2005. "On the new export sector in developing countries," International Economic Journal, Taylor & Francis Journals, vol. 19(4), pages 579-587.
    • Handle: RePEc:taf:intecj:v:19:y:2005:i:4:p:579-587
    DOI: 10.1080/10168730500199608
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    References listed on IDEAS

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