Can fiscal policy improve welfare in a small dependent economy with feedback effects?

I develop an intertemporal general equilibrium two-sector model for a small dependent economy. Firms in the non-tradable-good sector are assumed to be large, both at the industry and the economy levels, and to compete over qu antities. The exchange rate is fixed and financial capital is perfectly mob ile. I study the effects of government purchases of goods on the macroecono mic short- and long-run equilibria when entry is possible, Sufficient condi tions for welfare improvement are also derived.