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1 – 4 of 4Gopal Tribedy, Hamid Beladi and Basudeb Biswas
A simple two‐sector general equilibrium model is developed to showhow the phenomenon of negative value‐added occurs in the protectedsector, when the intermediate input is an…
Abstract
A simple two‐sector general equilibrium model is developed to show how the phenomenon of negative value‐added occurs in the protected sector, when the intermediate input is an exportable of the country. Previously, it has been shown in a partial analysis that the production loss of negative value‐added comprises two elements – the foreign exchange loss and the domestic resource loss. These losses are geo‐metrically identified in the general equilibrium model. This analysis departs from earlier ones, however, in that the intermediate input is treated as an exportable good rather than an importable one.
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Hamid Beladi, Basudeb Biswas and Gopal Tribedy
With regard to the effect of growth on the balance of payments of a country, the conclusion of the Keynesian theory of income determination sharply differs from that of the…
Abstract
With regard to the effect of growth on the balance of payments of a country, the conclusion of the Keynesian theory of income determination sharply differs from that of the monetary theory. This article suggests an integrated approach towards the derivation of the import function and the balance of payments equation for a money‐using economy from the utility‐maximising behaviour of individuals. Thereby, it shows that the difference between the conclusions of the two theories results from an incorrect specification of the balance of payments equation in the Keynesian theory.