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Under this scheme, any acceleration of the economy led to fewer exports (more exportable goods were demanded internally) and more imports of inputs and capital goods.
These new industries usually make exportable goods, such as cotton textiles or toys.
Moreover, for a regime desperately short of cash and exportable goods, nuclear material and missile technology provide opportunities for cash.
Many of them have small economies that produce few exportable goods.
The competiveness of exportable goods deteriorates as a result of imposing green tariffs on imports.
Real investment in China is about 45% of GDP, and, aside from housing and infrastructure spending, about half of this capital expenditure goes toward the production of new capital goods that produce more exportable goods.
Similar(50)
Both have turned to intellectual property as an exportable good when natural resources have fallen short.
Second, the exportable good is an important component of the consumption bundle.
In scenario BAI, an import tariff of π j is imposed on all imports; in scenario BAE, a subsidy of π j is used for each exportable good.
Moreover, even the owners of inputs employed in the secondary sector will have weaker incentives to support protectionism if this shift toward services occurs at the expense of the consumption of the exportable good.
The argument presented in our model is similar to the Stolper Samuelson (1941) result: if labor is assumed to be employed less intensively in the production of the exportable good, then protection should increase its real remuneration.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com