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AA00260492-19900002-0043.pdf
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Title |
Title |
FACTOR UNDERUTILIZATION AND THE THEORY OF INTERNATIONAL TRADE
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BELADI, Hamid
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University of Dayton
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MARJIT, Sugata
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Jadavpur University
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Keio Economic Society, Keio University
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1990
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Keio economic studies
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27
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2
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1990
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Start page |
43
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End page |
51
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Abstract |
In this paper we formulated a two-sector, general equilibrium model in the presence of Underutilization of Capital and integrate it with the main corpus of Trade Theory. In general, our model shows that protection granted to the agricultural sector may be inferior to protecting the other industry and the essence of our policy implication is that protecting agricultural sector from foreign competition is likely to increase Underutilization of Captial and idle capacity.
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