TITLE:
Do Measures of Economic Reforms Complement Each Other?
AUTHORS:
Jonaki Sen Gupta, Ranjanendra Narayannag, Rakhi Banerjee
KEYWORDS:
Trade Liberalization, Welfare, Capital Inflow
JOURNAL NAME:
Modern Economy,
Vol.8 No.2,
February
28,
2017
ABSTRACT: Globalization is a package of interrelated measures
including tariff liberalization and encouragement to FDI. The question to be
posed is whether these measures produce similar effects reinforcing each other
or they have contradictory effects. We use a three-sector general equilibrium model
to show that foreign capital inflow produces unfavorable effects on
unemployment and welfare while tariff liberalization produces positive effects
on these variables.