Queensland Spanner Crab Fishery : Commercial quota setting for June 2015 – May 2016

The Australian fishery for spanner crabs is the largest in the world, with the larger Queensland (QLD) sector’s landings primarily exported live overseas and GVP valued ~A$5 million per year. Spanner crabs are unique in that they may live up to 15 years, significantly more than blue swimmer crabs (Portunus armatus) and mud crabs (Scylla serrata), the two other important crab species caught in Queensland. Spanner crabs are caught using a flat net called a dilly, on which the crabs becoming entangled via the swimming legs. Quota setting rules are used to assess and adjust total allowable harvest (quota) around an agreed target harvest of 1631 t and capped at a maximum of 2000 t. The quota varies based on catch rate indicators from the commercial fishery and a fishery-independent survey from the previous two years, compared to target reference points. Quota management applies only to ‘Managed Area A’ which includes waters between Rockhampton and the New South Wales (NSW) border. This report has been prepared to inform Fisheries Queensland (Department of Agriculture and Fisheries) and stakeholders of catch trends and the estimated quota of spanner crabs in Managed Area A for the forthcoming quota period (1 June 2015–31 May 2016). The quota calculations followed the methodology developed by the crab fishery Scientific Advisory Group (SAG) between November 2007 and March 2008. The total reported spanner crab harvest was 917 t for the 2014 calendar year, almost all of which was taken from Managed Area A. In 2014, a total of 59 vessels were active in the QLD fishery, the lowest number since the peak in 1994 of 262 vessels. Recent spanner crab harvests from NSW waters have been about 125 t per year. The spanner crab Managed Area A commercial standardised catch rate averaged 0.739 kg per net-lift in 2014, 24% below the target level of 1.043. Mean catch rates declined in the commercial fishery in 2014, although the magnitude of the decreases was highest in the area north of Fraser Island. The NSW–QLD survey catch rate in 2014 was 16.849 crabs per ground-line, 22% above the target level of 13.972. This represented a decrease in survey catch rates of 0.366 crabs per ground-line, compared to the 2013 survey. The Queensland spanner crab total allowable harvest (quota) was set at 1923 t in 2012 and 2013. In 2014, the quota was calculated at the base level of 1631 t. However, given that the 2012 fisheryindependent survey was not undertaken for financial reasons, stakeholders proposed that the total allowable commercial catch (TACC) be decreased to 1777 t; a level that was halfway between the 2012/13 quota of 1923 t and the recommended base quota of 1631 t. The results from the current analysis indicate that the quota for the 2015-2016 financial year be decreased from 1777 t to the base quota of 1631 t.

Rukous on perintöä suvusta sukuun : Ikääntyneet ja uskonto vuosituhannen vaihteen Suomessa

"Prayer, a heritage from generation to generation" The elderly and religion in Finland at the turn of the 21st century The strong demographic changes in Europe mean that research on the elderly is highly needed, and also from the viewpoint of their resources and opportunities. Further, it is important to determine, how the elderly could find a meaningful place as members of the chain of generations in our rapidly changing society. The aim of this study was to find out how the elderly build and perceive their place in the society through religious texts. The study was based on religious texts written by elderly people in the study groups of the Finnish pensioners organization Pension Union (Eläkeliitto). These 943 short prayers, poems, and aphorisms were collected during the Tree of Life (Elämänpuu) project in 1998-1999 and were then analysed applying qualitative content analysis and grounded theory methodology. The social construction of aging and the view of communication as a collective signifying process were used as the mainstays of the research perspective. The themes brought forward by the elderly writers were grouped around three key themes: the self, the world and religion. In this examination religion with its forms of expression appeared to be deeply rooted to each of these themes and thus seems a vital part of the elderly writers' culture. In connection with the theme of the self, the religious forms of expression provided a means of building a coherent and culturally accepted self-image which is further supported by positive views of personal history and current life situation. In relation to the world theme, the elderly writers stressed the importance of close social relationships and at the same time expressed anxiety with regard to the changing world. Concerning the theme of religion, the religious forms of expression were first and foremost used in building and creating a sense of personal safety and a belief in the future. The study suggests that skill in the use of religious language enable the elderly to cope with equivocal life events and cognitive dissonance. At the social level the religious forms of expression seemed to connect the writers to the Finnish linguistic culture and identity, as well as to the collective memory, where religion plays a central part. By using religious language the elderly both exploit and maintain these considerable social resources. The key result of the study is that the elderly were found to have a significant and separate role in the continuity and well-being of society. Bound to the religious tradition, the elderly seem to carry significant information as regards the identity of the Finnish people, information which is essentially passed on to future generations. By sustaining traditions and thus the collective identity, they perform a uniquely productive task and their life experience could be seen as a particular type of capital in the society. This result also raises a grave question: Will the elderly of the future be able to undertake this task that so profoundly requires religious literacy?

Ett' varttuisi Suomenmaa : Suomalaisten kasvattaminen kulutusyhteiskuntaan kotimaisissa lyhytelokuvissa 1920-1969

The birth of the Modern Consumer Society in Finnish short films 1920-1969 The main subject of this research is Finnish short films in 1920-1969. These short films were produced by film studios for private enterprises, banks, advisory organizations, communities and the state. The evolution of short films on consumer affairs was greatly influenced by a special tax reduction system that was introduced in 1933 and lasted until 1964. The tax reduction system increased the production volumes of educational short films significantly. This study covers 342 Finnish short films, more than any other study in the field before this. The aim of this research is to examine how short films introduced Finns to modern consumer society. The cinemagoers were an excellent target group for different advisory groups as well as advertisers. Short films were used by organizations and private enterprises from very early on. In the 1920's Finns were still living in rural areas and agriculture was the dominant industry. Consumer society was still in its infancy, and the prevalent attitude to industrially produced goods was that of suspicion. From the cultural and ideological point of view the evolution of trust was one of the first steps towards the birth of the consumer society. Short films were an excellent means for helping to transform public attitudes. During the war period short films were an important means of propaganda. Short films were produced in abundance and shown for big audiences. They guided people how to survive shortages caused by the war. Even though the idea of rationalization was presented in short films somewhat in the 1920's and 1930's it became a national virtue during the war period. The idea of rationalization widened from the industry to households expecially in the late 1940's and the 1950's. New household apparati and the way in which daily chores were taken care of were presented not as luxury consumption but as a way of rationalization and saving money and effort. Banks and the advisory organizations guided the public to save their money for a specific target. Short films were use to help the public to acceps industrial goods and the notions of planning and saving. The ideological change from an agrarian society to consumer society was based on old acricultural ideas and self-sufficiency was evolved into rational and economizing consumerism. This made Finnish consumer society to value durable consumer goods and own homes. The public was also encouraged to consider their own decisions in the national context - especially after the second world war Finland laced capital, and personal savings were strongly presented as a way to help the whole nation. Modern hedonistic values were not dominant in Finland in the1950's and 1960's. Initial traces of modern hedonism can be seen in the films, but they were only marginal paths in the bigger.

Essays on corporate governance, stakeholders, and restructuring

This dissertation consists of an introductory section and three theoretical essays analyzing the interaction of corporate governance and restructuring. The essays adopt an incomplete contracts approach and analyze the role of different institutional designs to facilitate the alignment of the objectives of shareholders and management (or employees) over the magnitude of corporate restructuring. The first essay analyzes how a firm's choice of production technology affects the employees' human capital investment. In the essay, the owners of the firm can choose between a specific and a general technology that both require a costly human capital investment by the employees. The specific technology is initially superior in using the human capital of employees but, in contrast to the general technology, it is not compatible with future innovations. As a result, anticipated changes in the specific technology diminish the ex ante incentives of the employees to invest in human capital unless the shareholders grant the employees specific governance mechanisms (a right of veto, severance pay) so as to protect their investments. The results of the first essay indicate that the level of protection that the shareholders are willing to offer falls short of the socially desirable one. Furthermore, when restructuring opportunities become more abundant, it becomes more attractive both socially and from the viewpoint of the shareholders to initially adopt the general technology. The second essay analyzes how the allocation of authority within the firm interacts with the owners' choice of business strategy when the ability of the owners to monitor the project proposals of the management is biased in favor of the status quo strategy. The essay shows that a bias in the monitoring ability will affect not only the allocation of authority within the firm but also the choice of business strategy. Especially, when delegation has positive managerial incentive effects, delegation turns out to be more attractive under the new business strategy because the improved managerial incentives are a way for the owners to compensate their own reduced information gathering ability. This effect, however, simultaneously makes the owners hesitant to switch the strategy since it would involve a more frequent loss of control over the project choice. Consequently, the owners' lack of knowledge of the new business strategy may lead to a suboptimal choice of strategy. The third essay analyzes the implications of CEO succession process for the ideal board structure. In this essay, the presence of the departing CEO on the board facilitates the ability of the board to find a matching successor and to counsel him. However, the ex-CEO's presence may simultaneously also weaken the ability of the board to restructure since the predecessor may use the opportunity to distort the successor's project choice. The results of the essay suggest that the extent of restructuring gains, the firm's ability to hire good outside directors and the importance of board's advisory role affect at which point and for how long the shareholders may want to nominate the predecessor to the board.

The Politics of Pulp Investment and the Brazilian Landless Movement (MST)

The Politics of Pulp Investment and the Brazilian Landless Movement (MST) The paper industry has been moving more heavily to the global South at the beginning of the 21st century. In a number of cases the rural populations of the global South have engaged in increasingly important resistance in their scuffle with the large-scale tree plantation-relying pulp investment model. The resistance had generally not yet managed to slow down Southern industrial tree plantation expansion until 2004. After all, even the MST, perhaps the strongest of the Southern movements, has limited power in comparison to the corporations pushing for plantation expansion. This thesis shows how, even against these odds, depending on the mechanisms of contention and case-specific conflict dynamics, in some cases the movements have managed to slow and even reverse plantation expansion. The thesis is based on extensive field research in the Brazilian countryside. It outlines a new theory of contentious agency promotion, emphasizing its importance in the shaping of corporate resource exploitation. The thesis includes a Qualitative Comparative Analysis of resistance influence on the economic outcomes of all (14) Brazilian large-scale pulp projects between 2004-2008. The central hypothesis of the thesis is that corporate resource exploitation can be slowed down more effectively and likely when the resistance is based on contentious agency. Contentious agency is created by the concatenation of five mutually supporting mechanisms of contention: organizing and politicizing a social movement; heterodox framing of pulp projects; protesting; networking; and embedding whilst maintaining autonomy. The findings suggest that contentious agency can slow or even reverse the expansion of industrial plantations, whereas when contentious agency promotion was inactive, fast or even unchecked plantation expansion was always the outcome. The rule applied to all the assessed 14 pulp conflict cases. The hypothesis gained strong support even in situations where corporate agency promotion was simultaneously active. In previous studies on social movements, there has been a lack of contributions that help us understand the causal mechanisms of contention influencing economic outcomes. The thesis answers to the call by merging a Polanyian analysis of the political economy with the Dynamics of Contention research program and making a case for the impact of contentious agency on capital accumulation. The research concludes that an efficient social movement can utilize mechanisms of contention to promote the potential of activism among its members and influence investment outcomes. Protesting, for example via pioneering land occupations, seemed to be particularly important. Until now, there has been no comprehensive theory on when and how contentious agency can slow down or reverse the expansion of corporate resource exploitation. The original contribution of this research is to provide such a theory, and utilize it to offer an extensive explanation on the conflicts over pulp investment in Brazil, the globalization of the paper industry, and slowing of industrial plantation expansion in the global South.

Studies on Wage Differentials and Labour Market Transitions

This thesis consists of four studies. The first study examines wage differentials between women and men in the Finnish manufacturing sector. A matched employer-employee data set is used to decompose the overall gender wage gap into the contributions of sex differences in human capital, labour market segregation, and residual within-job wage differentials. The topic of the second study is the relationship between the extended unemployment benefits and labour market transitions of older workers. The analysis exploits a quasi-experimental setting caused by a change in the law that raised the eligibility age of workers benefiting from extended benefits. Roughly half of the unemployed workers with extended benefits are estimated to be effectively withdrawn from labour market search. The risk of unemployment declined and the re-employment probability increased among the age groups directly affected by the reform. The third study provides an empirical analysis of a structural equilibrium search model. Estimation results from various model specifications are compared and discussed. The last study is a methodological study where the difficulties of interpreting the results of competing risks hazard models are discussed and a solution for a particular class of models is proposed. It is argued that a common practice of reporting the results of qualitative response models in terms of marginal effects is also useful in the context of competing risks duration models.

Essays on Russia's Economic Transition

This study comprises an introductory section and three essays analysing Russia's economic transition from the early 1990s up to the present. The papers present a combination of both theoretical and empirical analysis on some of the key issues Russia has faced during its somewhat troublesome transformation from state-controlled command economy to market-based economy. The first essay analyses fiscal competition for mobile capital between identical regions in a transition country. A standard tax competition framework is extended to account for two features of a transition economy: the presence of two sectors, old and new, which differ in productivity; and a non-benevolent regional decision-maker. It is shown that in very early phase of transition, when the old sector clearly dominates, consumers in a transition economy may be better off in a competitive equilibrium. Decision-makers, on the other hand, will prefer to coordinate their fiscal policies. The second essay uses annual data for 1992-2003 to examine income dispersion and convergence across 76 Russian regions. Wide disparities in income levels have indeed emerged during the transition period. Dispersion has increased most among the initially better-off regions, whereas for the initially poorer regions no clear trend of divergence or convergence could be established. Further, some - albeit not highly robust - evidence was found of both unconditional and conditional convergence, especially among the initially richer regions. Finally, it is observed that there is much less evidence of convergence after the economic crisis of 1998. The third essay analyses industrial firms' engagement in provision of infrastructure services, such as heating, electricity and road maintenance. Using a unique dataset of 404 large and medium-sized industrial enterprises in 40 regions of Russia, the essay examines public infrastructure provision by Russian industrial enterprises. It is found that to a large degree engagement in infrastructure provision, as proxied by district heating production, is a Soviet legacy. Secondly, firms providing district heating to users outside their plant area are more likely to have close and multidimensional relations with the local public sector.

Essays on Labor Market Frictions, Technological Change and Macroeconomic Fluctuations

The dissertation consists of an introductory chapter and three essays that apply search-matching theory to study the interaction of labor market frictions, technological change and macroeconomic fluctuations. The first essay studies the impact of capital-embodied growth on equilibrium unemployment by extending a vintage capital/search model to incorporate vintage human capital. In addition to the capital obsolescence (or creative destruction) effect that tends to raise unemployment, vintage human capital introduces a skill obsolescence effect of faster growth that has the opposite sign. Faster skill obsolescence reduces the value of unemployment, hence wages and leads to more job creation and less job destruction, unambiguously reducing unemployment. The second essay studies the effect of skill biased technological change on skill mismatch and the allocation of workers and firms in the labor market. By allowing workers to invest in education, we extend a matching model with two-sided heterogeneity to incorporate an endogenous distribution of high and low skill workers. We consider various possibilities for the cost of acquiring skills and show that while unemployment increases in most scenarios, the effect on the distribution of vacancy and worker types varies according to the structure of skill costs. When the model is extended to incorporate endogenous labor market participation, we show that the unemployment rate becomes less informative of the state of the labor market as the participation margin absorbs employment effects. The third essay studies the effects of labor taxes on equilibrium labor market outcomes and macroeconomic dynamics in a New Keynesian model with matching frictions. Three policy instruments are considered: a marginal tax and a tax subsidy to produce tax progression schemes, and a replacement ratio to account for variability in outside options. In equilibrium, the marginal tax rate and replacement ratio dampen economic activity whereas tax subsidies boost the economy. The marginal tax rate and replacement ratio amplify shock responses whereas employment subsidies weaken them. The tax instruments affect the degree to which the wage absorbs shocks. We show that increasing tax progression when taxation is initially progressive is harmful for steady state employment and output, and amplifies the sensitivity of macroeconomic variables to shocks. When taxation is initially proportional, increasing progression is beneficial for output and employment and dampens shock responses.

Essays on Finnish Economic Growth and Productivity, 1860-2005

This study examines Finnish economic growth. The key driver of economic growth was productivity. And the major engine of productivity growth was technology, especially the general purpose technologies (GPTs) electricity and ICT. A new GPT builds on previous knowledge, yet often in an uncertain, punctuated, fashion. Economic history, as well as the Finnish data analyzed in this study, teaches that growth is not a smooth process but is subject to episodes of sharp acceleration and deceleration which are associated with the arrival, diffusion and exhaustion of new general purpose technologies. These are technologies that affect the whole economy by transforming both household life and the ways in which firms conduct business. The findings of previous research, that Finnish economic growth exhibited late industrialisation and significant structural changes were corroborated by this study. Yet, it was not solely a story of manufacturing and structural change was more the effect of than the cause for economic growth. We offered an empirical resolution to the Artto-Pohjola paradox as we showed that a high rate of return on capital was combined with low capital productivity growth. This result is important in understanding Finnish economic growth 1975-90. The main contribution of this thesis was the growth accounting results on the impact of ICT on growth and productivity, as well as the comparison of electricity and ICT. It was shown that ICT s contribution to GDP growth was almost twice as large as electricity s contribution over comparable periods of time. Finland has thus been far more successful as an ICT producer than a producer of electricity. Unfortunately in the use of ICT the results were still more modest than for electricity. During the end of the period considered in this thesis, Finland switched from resource-based to ICT-based growth. However, given the large dependency on the ICT-producing sector, the ongoing outsourcing of ICT production to low wage countries provides a threat to productivity performance in the future. For a developed country only change is constant and history teaches us that it is likely that Finland is obliged to reorganize its economy once again in the digital era.

Valtion taiteilijatuki taiteilijan määrittelijänä : Määrittelyvallan ehtoja ja ulottuvuuksia pohjoismaisen tukimallin suomalaisessa muunnelmassa

The dissertation studies state support for artists in the context of the societal process of producing definitions of the artist. It examines the dimensions of and conditions for the power of definition inherent in the Nordic model of artists' support. The dissertation consists of a summary in Finnish and five articles published in English. The theoretical framework is based on Pierre Bourdieu's theory of the fields of cultural production and the concept of artistic classification systems introduced by Paul DiMaggio. The framework also makes use of the analyses by Per Mangset and Dag Solhjell of the relationship between Norwegian artistic fields and the state policy of supporting art. The study assumes that an examination of the formulation and content of the policy of support is insufficient, and extends the analysis to the implementation of the policy both at the level of the structures of decision making and at the level of actual decisions and their impacts. The analysis of the economic dimension of the definition power of artists' support uses register-based data on artists' financial situation. Survey data is used in studying the attitudes of Finnish artists toward state support for artists. The analysis of the Nordic policy of supporting artists uses data based on documents and interviews concerning the formulation and implementation of the policy in Denmark, Finland, Norway and Sweden. The cross-country comparison contributes to identifying the specific features of the Finnish policy of supporting artists from the point of view of its potential power of definition. The study concludes that the legitimating arguments, goals and means of the policy of supporting artists, as well as the structures and actions of the bodies implementing the policy, have an impact on the formulation of definitions of the artist. For example, a relevant factor in this context seems to be the way in which the relationship between various fields of art and the system of support is organized. According to the comparative analysis, the greater the correspondence between the administrative structures of decision making and the organizational structure of artistic fields, the greater the resistance to change regarding the artistic categories produced. By contrast, those structures of decision making which require negotiations and compromises between various interests have produced artistic categories that have been more inclined to change. The development of the Finnish system of artists' support over the past few decades can be described as a slow expansion towards new areas of art. However, the demarcations and hierarchies between various fields of art have not lost their significance, and state support for artists still concentrates on the same areas as it did when the policy of supporting artists was established. State support always contains an element of power. According to the study, the Nordic policy of supporting artists has both the material and symbolic power to participate in the production of societal definitions of the artist. The legitimating arguments, goals and means of the Finnish artists' support, as well as the criteria for granting it, strengthen the symbolic dimension of this power also in terms of the symbolic capital valued by the artistic fields. In this sense, it can be said that the state is one of the actors in the Finnish fields of art. The symbolic dimension of the definition power of artists' support is, however, in the last instance derived from the artistic fields, and reinforces on its part the definition power of these fields.

Climate forcing on avian life history

In the 21st century, human-induced global climate change has been highlighted as one of the most serious threats to ecosystems worldwide. According to global climate scenarios, the mean temperature in Finland is expected to increase by 1.8 4.0°C by the end of the century. The regional and seasonal change in temperature has predicted to be spatially and temporally asymmetric, where the High-Arctic and Antarctic areas and winter and spring seasons have been projected to face the highest temperature increase. To understand how species respond to the ongoing climate change, we need to study how climate affects species in different phases of their life cycle. The impact of climate on breeding and migration of eight large-sized bird species was studied in this thesis, taking food availability into account. The findings show that climatic variables have considerable impact on the life-history traits of large-sized birds in northern Europe. The magnitude of climatic effects on migration and breeding was comparable with that of food supply, conventionally regarded as the main factor affecting these life-history traits. Based on the results of this thesis and the current climate scenarios, the following not mutually exclusive responses are possible in the near future. Firstly, asymmetric climate change may result in a mistiming of breeding because mild winters and early spring may lead to earlier breeding, whereas offspring are hatching into colder conditions which elevate mortality. Secondly, climate induced responses can differ between species with different breeding tactics (income vs. capital breeding), so that especially capital breeders can gain advantage on global warming as they can sustain higher energy resources. Thirdly, increasing precipitation has the potential to reduce the breeding success of many species by exposing nestlings to more severe post-hatching conditions and hampering the hunting conditions of parents. Fourthly, decreasing ice cover and earlier ice-break in the Baltic Sea will allow earlier spring migration in waterfowl. In eiders, this can potentially lead to more productive breeding. Fifthly, warming temperatures can favour parents preparing for breeding and increase nestling survival. Lastly, the climate-induced phenological changes in life history events will likely continue. Furthermore, interactions between climate and food resources can be complex and interact with each other. Eiders provide an illustrative example of this complexity, being caught in the crossfire between more benign ice conditions and lower salinity negatively affecting their prime food resource. The general conclusion is that climate is controlling not only the phenology of the species but also their reproductive output, thus affecting the entire population dynamics.

Build-up of toxic metals on the impervious surfaces of a commercial seaport

In the context of increasing threats to the sensitive marine ecosystem by toxic metals, this study investigated the metal build-up on impervious surfaces specific to commercial seaports. The knowledge generated in this study will contribute to managing toxic metal pollution of the marine ecosystem. The study found that inter-modal operations and main access roadway had the highest loads followed by container storage and vehicle marshalling sites, while the quay line and short term storage areas had the lowest. Additionally, it was found that Cr, Al, Pb, Cu and Zn were predominantly attached to solids, while significant amount of Cu, Pb and Zn were found as nutrient complexes. As such, treatment options based on solids retention can be effective for some metal species, while ineffective for other species. Furthermore, Cu and Zn are more likely to become bioavailable in seawater due to their strong association with nutrients. Mathematical models to replicate the metal build-up process were also developed using experimental design approach and partial least square regression. The models for Cr and Pb were found to be reliable, while those for Al, Zn and Cu were relatively less reliable, but could be employed for preliminary investigations.

Assignments of non-retail commercial leases: Some contentious issues

Assignment clauses in non-retail commercial leases are as infinitely varied as the circumstances in which disputes arise. Each clause must be individually interpreted as part of the lease in which it is embedded. Whilst the assignment of a lease is one of the most commonplace transactions between lessor and lessee, the case law reveals few unifying principles. This article seeks to cautiously identify a set of principles which should be in the mind of any lawyer when a dispute relating to an assignment arises. It concludes with a short checklist of matters which must be considered by such a person to encourage the application of principles in the first instance towards a resolution of the dispute.

Indoor air quality and energy management through real–time sensing in commercial buildings

Rapid growth in the global population requires expansion of building stock, which in turn calls for increased energy demand. This demand varies in time and also between different buildings, yet, conventional methods are only able to provide mean energy levels per zone and are unable to capture this inhomogeneity, which is important to conserve energy. An additional challenge is that some of the attempts to conserve energy, through for example lowering of ventilation rates, have been shown to exacerbate another problem, which is unacceptable indoor air quality (IAQ). The rise of sensing technology over the past decade has shown potential to address both these issues simultaneously by providing high–resolution tempo–spatial data to systematically analyse the energy demand and its consumption as well as the impacts of measures taken to control energy consumption on IAQ. However, challenges remain in the development of affordable services for data analysis, deployment of large–scale real–time sensing network and responding through Building Energy Management Systems. This article presents the fundamental drivers behind the rise of sensing technology for the management of energy and IAQ in urban built environments, highlights major challenges for their large–scale deployment and identifies the research gaps that should be closed by future investigations.

Export subsidies and foreign capital inflows

The welfare effect of a foreign capital inflow in an economy which practises an export-oriented trade policy is examined. The latter takes the form of optimally designed export subsidies, minimizing the welfare costs of existing import tariffs. Under the practice of this policy, an inflow of foreign capital is shown to have anambiguous welfare effect. An empirically relevant condition for welfare improvement is derived and discussed.