search query: @author Grinols, E. L. / total: 10
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| Author: | Grinols, E. L. |
| Title: | Unemployment and foreign capital : The relative opportunity costs of domestic labour and welfare. |
| Journal: | Economica
1991 : FEB, VOL. 58:229, p. 107-121 |
| Index terms: | UNEMPLOYMENT LABOUR COSTS WELFARE CAPITAL |
| Language: | eng |
| Abstract: | The consequences of increased foreign capital for an economy with unemployment are analysed under different assumptions that influence the relative opportunity costs of domestic labour. The investigation suggests that the implications of the literature on the welfare effects of increased foreign capital are misleading. The paper shows that welfare gains result from increased foreign capital if the opportunity costs of labour are sufficiently low relative to the wages earned by labourers employed by new foreign capital. The findings of the paper suggest that cases where increased foreign capital must be welfare-harming represent extreme parametrizations in the set of possibilities. |
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