Public infrastructure and foreign investment in the presence of monopolistic competition
Anwar, Sajid (2004) Public infrastructure and foreign investment in the presence of monopolistic competition. In: Proceedings of the 33rd Australian Conference of Economists 2004. From: 33rd Australian Conference of Economists 2004, 27-30 September 2004, Sydney, NSW, Australia.
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In the context of a small open economy where producer services sector operates under conditions of monopolistic competition and the level of foreign investment is endogenously determined. this paper examines the impact of changes in the supply of public infrastructure on various economic variables. The public infrastructure, which also enters consumer utility function in the form of a pure public good, reduces the fixed cost associated with the production of the services sector. It is shown that an increase in the supply of public infrastructure increases wage-rental ratio, decreases foreign investment and decreases the degree of monopoly power in the services sector.
|Item Type:||Conference Item (Refereed Research Paper - E1)|
|Keywords:||foreign investment; monopolistic competition; public infrastructure|
|Date Deposited:||08 Apr 2010 23:33|
|FoR Codes:||14 ECONOMICS > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified @ 100%|
|SEO Codes:||91 ECONOMIC FRAMEWORK > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified @ 100%|