THE EFFECTS OF FOREIGN CAPITAL INFLOWS UNDER INTERTEMPORAL GENERAL EQUILIBRIUM

• Main Authors: Yu-Ling Cheng, 鄭又菱
• Other Authors: Yao-Nan Hsu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/7mp4fs

碩士 === 銘傳大學 === 經濟學系碩士班 === 94 === Abstract This paper employs a two-period optimal Harris-Todaro model in a small open economy. The adjustment of capital has Rigidity in the short-run. It could only move free intersector in the long-run. Under this situation, we discuss the influence on resource, reward of factor, welfare and current account while we permit the variation of foreign capital in an export processing zone. As capital has rigidity in the short-run and it could move in the long-run, that could have the result that the rate of unemployment will reduce if we allow foreign capital invest in our country. However, the influence on welfare and current account depends on the interest effect and the employment effect of the two periods. If we cancel the export processing zone and allow foreign capital investment in home country, the unemployment rate will also decline. However, the influence on welfare and current account while foreign capital increasing depends on the employment effect, the income effect and tariff transferring effect.