Investment and Expropriation under Oligarchy and Democracy in a Heckscher-Ohlin World
نویسندگان
چکیده
منابع مشابه
Investment and Expropriation under Oligarchy and Democracy in a Heckscher-Ohlin World
We study the incentives to expropriate foreign capital under democracy and oligarchy. We model a two-sector small open economy where foreign investment triggers Stolper-Samuelson effects through reducing exporting costs. We show how incentives to expropriate depend on the distributional effects of the investment and on how these affect the interests of the group in power. How investment affects...
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Eli Heckscher (1919) and Bertil Ohlin (1933) laid the groundwork for substantial developments in the theory of international trade by focusing on the relationships between the composition of countries’ factor endowments and commodity trade patterns as well as the consequences of free trade for the functional distribution of income within countries. From the outset general equilibrium forms of a...
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The Heckscher-Ohlin model with arbitrary number of goods, factors and countries (consumers) and no restrictions on factor trading is shown to be equivalent to an exchange model whose goods are the productive factors while consumer’s indirect demands for factors are derived from their actual demands for consumption goods. This equivalence enables one to import properties like the pathconnectedne...
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Previous empirical tests have found that,contrary to the conclusions of the HeckscherOhlin model, the factor composition of traded goods fails to reveal relative factor abundance rankings. Using a nonparametric approach, this paper discusses the refutability of two of the assumptions of the HO model: that countries have identical homothetic preferences and identical constant returns to scale pr...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1085360