Title: Transfers, Welfare and Inter-Industrial Externalities
Abstract: This paper examines the welfare effects of a unilateral transfer for both the donor and the receiving countries when industrial production function exhibit bi-directional externalities. It is shown that the welfare effects depend on the direction of the transfer-induced shift in the terms of trade, the relative magnitudes of the value-adjusted inter-industrial externalities, in addition to the primary effect of the transfer. The conditions for different welfare paradoxes, the strong paradox and the weak paradox, are obtained; and the likelihood of the occurrence of each paradox is considered. [411]
Publication Year: 1990
Publication Date: 1990-09-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 2
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