Capital Mobility in a Tariff-Ridden International Economy.

This article focuses on the capital mobility in a tariff-ridden economy. The article maintains that the investigations in both directions have been vitiated by an oversight regarding the full implications of the peculiar conceptualization of capital mobility upon which the results hinge. Capital mobility in a tariff-impeded economy is conceived to mean that goods which move as returns to overseas capital are unaffected by the tariffs levied on goods secured through trade. But if capital is mobile in this strong sense, then capital mobility can be shown to be a substitute for trade under much weaker assumptions than previously recognized. This paper is therefore submitted as a contribution to a more adequate conceptualization of capital mobility.