Measurement of Welfare Gains and Losses Arising from Tax Restrictions on Trade Foreign Investment

Authors

  • Alejandro Jadresic Departamento de Ingeniería Industrial, University of Chile image/svg+xml

Keywords:

welfare measures, trade restrictions, foreign investment, tariffs, investment taxes, second-best policy

Abstract

In this paper welfare measures are derived to represent the welfare gains and losses which result from tax restrictions on trade and foreign investment in a small country that produces n commodities and uses m factors. Analytical and graphical measures are first derived under the assumption that the stock of foreign owned factor is given. Similar measures are then obtained assuming that foreign investment is endogeneously determined. Finally, measures are derived to evaluate the benefits associated to tariffs and investment taxes when used as second best policy instruments.

Downloads

Download data is not yet available.

References

Bhagwati, J. (1973). The theory of immiserizing growth: Further applications. En M. Conolly & A. Swoboda (Eds.), International trade and money (pp. 45–54). University of Toronto Press.

Brecher, R., & Bhagwati, J. (1981). Foreign ownership and the theory of trade and welfare. Journal of Political Economy, 89, 497–511.

Brecher, R., & Findlay, R. (1983). Tariffs, foreign capital, and national welfare. Journal of International Economics, 14, 277–288.

Dixit, A., & Norman, V. (1980). Theory of international trade. Cambridge University Press.

Helpman, E. (1978). The exact measurement of welfare losses which result from trade taxes. International Economic Review, 19, 157–163.

Helpman, E., & Razin, A. (1983). Increasing returns, monopolistic competition, and factor movements: A welfare analysis. Journal of International Economics, 14, 263–276.

Jadresic, A. (1984). Foreign investment and national welfare in a small country [Tesis de doctorado inédita]. Harvard University.

Kemp, M. (1966). The gain from international trade and investment: A neo Heckscher-Ohlin approach. American Economic Review, 56, 788–809.

Svensson, L. (1981). National welfare in the presence of foreign owned factors of production: A note on the dual approach (Seminar Paper No. 150). Institute of International Economic Studies.

Yabuuchi, S. (1982). A note on tariff-induced capital inflow and immiserization in the presence of taxation of foreign profits. Journal of International Economics, 12, 183–189.

Downloads

Published

1986-04-30

How to Cite

Jadresic, A. (1986). Measurement of Welfare Gains and Losses Arising from Tax Restrictions on Trade Foreign Investment. Economic Analysis Review, 1(1), 3–16. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/305

Issue

Vol. 1 No. 1 (1986)

Section

Articles

License

Copyright (c) 1986 Alejandro Jadresic

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Article usage

ViewsTimes this article's page was opened since the journal started recording statistics. One person can visit more than once.
131
DownloadsTimes the full text of this article (usually the PDF) was opened or downloaded.
200

All time, as recorded by the journal.

Last 2 years: 61 views, 146 downloads.

1.53 downloads per view (journal average 1.65).Downloads of the full text for every abstract view of this article, compared with the whole journal.

Explore the journal's metrics