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International Journal of Business Studies and Innovation
ISSN:2737-5331

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Vol.1, Iss.1, September 2021

 
 IJBSI 2021/9
Vol.1, Iss.1 : 75-83
https://doi.org/10.35745/ijbsi2021v01.01.0009
Uncertainty of the Imported Products and Its Effect on the Income Distribution of Importer

Song Chen1*
1School of International Business, Xiamen University Tan Kah Kee College


Abstract:
This paper aims to test the uncertainty of the imported products and its effect on the income distribution of importers. This research firstly shows Korea as the risk preference. We show that the relationship between capital and labor has been evolved from when there is no uncertainty to when there is uncertainty, while the relationship between import and capital is complementary. This result proves that the lower uncertainty of imported products hampers the capital of the importing country while it benefits the labor market.

Keywords:  Hicks q-Complementary; Substitution; Reverse Demand Elasticity

*Corresponding author; e-mail: chensong@xujc.com
© 2021   , ISSN 2737-5331




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