International trade, foreign investment, and the formation of the entrepreneurial class.

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Develops a two-sector model of a small open economy in which the size of the entrepreneurial class is endogenous. It is shown that the entrepreneurial class is smaller under free trade than would be first-best optimal in the presence of efficient risk-sharing institutions such as stock markets. Nonetheless, there are potential gains from trade, and any protectionist policy that increases the number of entrepreneurs will have deleterious welfare consequences.-from Author

Original languageEnglish (US)
Pages (from-to)605-613
Number of pages9
JournalReprint Series - University of Stockholm, Institute for International Economic Studies
Volume250
StatePublished - 1984
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

Fingerprint

Dive into the research topics of 'International trade, foreign investment, and the formation of the entrepreneurial class.'. Together they form a unique fingerprint.

Cite this