‘Total’ Balance-of-Payments and ‘Social’ Income Effects: Methods of Evaluation
The primary aim of our research project, to quantify the balance-of-payments effects of particular foreign investments, may not at first sight appear to raise any great theoretical difficulties. The immediate balance-of-payments effects of an investment, given by the direct impact of its operations on the host country’s foreign exchanges, have all been discussed already, and have been shown to raise a number of problems regarding oligopolistic practices, regulation and bargaining — all issues of great practical importance, but not particularly complex or baffling from the viewpoint of economic theory.
KeywordsForeign Investment Foreign Firm Income Effect Foreign Capital Shadow Price
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