Effective Protection, Policy Appraisal and Trade Policy Reform

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Effective Protection, Policy Appraisal and Trade Policy Reform

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David Greenaway (University of Nottingham)
Chris Milner (University of Nottingham)

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David Greenaway

Abstract

When the effective protection concept was first developed it was widely regarded as a key measure of the structure of protection and became widely deployed. It was however, subject to a theoretical critique on the grounds that it was essentially a partial equilibrium measure, which could not be easily embedded in a general equilibrium framework. Notwithstanding this critique, the concept has continued to be widely used, especially in the context of policy reform and policy appraisal in developing countries. This paper re-appraises the concept, reviews the extent of its application and discusses the factors behind its longevity as an investigative tool. The paper concludes that the measure still has a role to play in evaluating the structure of protection. Copyright © Blackwell Publishing Ltd 2003.

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Article provided by Blackwell Publishing in its journal The World Economy.

Volume (Year): 26 (2003)
Issue (Month): 4 (04)
Pages: 441-456
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Handle: RePEc:bla:worlde:v:26:y:2003:i:4:p:441-456

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Kate Flowers & Malcolm Bosworth, 2002. "WTO Market Access Negotiations for Non-Agricultural Products, Doha Round: Implications for East Asia," Trade Working Papers 394, East Asian Bureau of Economic Research. [Downloadable!]
Sven W. Arndt, 2004. "Trade Diversion and Production Sharing," Working Papers 0401, Lowe Institute of Political Economy. [Downloadable!]
Prema-chandra Athukorala, 2005. "Trade Policy Reforms and the Structure of Protection in Vietnam," Departmental Working Papers 2005-06, Australian National University, Economics RSPAS. [Downloadable!]
Other versions:
- Prema-chandra Athukorala, 2006. "Trade Policy Reforms and the Structure of Protection in Vietnam," The World Economy, Blackwell Publishing, vol. 29(2), pages 161-187, 02. [Downloadable!] (restricted)

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