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

G. M. Grossman

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

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	605-613
Number of pages	9
Journal	Reprint Series - University of Stockholm, Institute for International Economic Studies
Volume	250
State	Published - 1984
Externally published	Yes

All Science Journal Classification (ASJC) codes

General Environmental Science
General Earth and Planetary Sciences

Cite this

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

Abstract

All Science Journal Classification (ASJC) codes

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