Pakistan Institute of Development Economics

PDR

THE PAKISTAN DEVELOPMENT REVIEW 

International Trade and Foreign Investment: A Model with Asymmetric Production
Author: M. Ali Khan

We present a two-country model of trade and investment in which the output of one country is U5ed as an intermediate input in the other country. Our work extends and qualifies recent work of Kemp and Ohyama and also has a bearing on the theory of foreign investment with sector-specific capital.

M. Ali Khan

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