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International capital movement, trade policy and unemployment

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  • Marjit, Sugata

Abstract

This paper builds up a two country model of trade and unemployment allowing for perfect mobility of capital across the borders. Capital moves from the north to the south, which suffers from unemployment. A few basic policies related to lowering of unemployment are discussed. In particular it is shown that larger tariff as well as smaller tax on foreign capital may reduce employment in the south.

Suggested Citation

  • Marjit, Sugata, 1991. "International capital movement, trade policy and unemployment," Discussion Papers, Series II 136, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:136
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    1. repec:bla:econom:v:42:y:1975:i:165:p:59-78 is not listed on IDEAS
    2. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    3. Marjit, Sugata, 1990. "A simple production model in trade and its applications," Economics Letters, Elsevier, vol. 32(3), pages 257-260, March.
    4. repec:bla:econom:v:54:y:1987:i:214:p:173-84 is not listed on IDEAS
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