Abstract
A remarkable feature of the 21st century is extremely rapid international capital mobility compared to considerably sluggish annual FDI flows in the last quarter of the 20th century. If this empirically significant assumption of internationally footloose capital is adopted, an economy’s production set, and its boundary, the production possibility frontier, are, under this assumption, rendered market dependent insofar as domestic commodity price variation causes a swift relocation of the production frontier, contrasted with the market-invariant frontier in standard theory. Other conclusions of economic analysis are, in general, also modified, rendering this change in assumption materially relevant to economic theory.
Recommended Citation
(2026)
"Market-Dependent Domestic Production Set,"
Journal of Economics and Finance Education: Vol. 14:
Iss.
1, Article 4.
Available at:
https://scholarship.rollins.edu/jefe/vol14/iss1/4
