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| Author: | Richardson, M. |
| Title: | Content protection with foreign capital |
| Journal: | Oxford Economic Papers
1993 : JAN, VOL. 45, p. 103-117 |
| Index terms: | CAPITAL DOMESTIC PRODUCTION ENVIRONMENTAL PROTECTION |
| Language: | eng |
| Abstract: | The author considers local content requirements in a second-best environment, with foreign capital flows, and considers the consequences for domestic producers of final goods. He derives an expression for the welfare consequences of content protection in a competitive general equilibrium model of two stages of production and show that content protection initially has no effect other than expanding foreign firms at the expense of domestic ones. Conflicting effects on domestic welfare are discussed. |
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