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Did Late-Nineteenth-Century U.S. Tariffs Promote Infant Industries? Evidence from the Tinplate Industry

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  • Irwin, Douglas A.

Abstract

Did late-nineteenth-century U.S. tariffs promote infant industries? After earlier failures, the tinplate industry became established and flourished after receiving protection with the 1890 McKinley tariff. Treating producers entry and exit decisions as endogenous, a probability model is estimated to determine the conditions under which domestic tinplate production will occur. Counterfactual simulations indicate that, without the McKinley duties, domestic tinplate production would have arisen about a decade later as U.S. iron and steel input prices converged with those in Britain. Although the tariff accelerated the industry s development, welfare calculations suggest that protection does not pass a cost-benefit test.

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Article provided by Cambridge University Press in its journal The Journal of Economic History.

Volume (Year): 60 (2000)
Issue (Month): 02 (June)
Pages: 335-360

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Handle: RePEc:cup:jechis:v:60:y:2000:i:02:p:335-360_02

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Cited by:
  1. Svend Jespersen, 2004. "The establishment of the Danish windmill industry—Was it worthwhile? A comment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(1), pages 167-169, March.
  2. Hylke Vandenbussche & Maurizio Zanardi, 2008. "What explains the proliferation of antidumping laws?," Economic Policy, CEPR & CES & MSH, vol. 23, pages 93-138, 01.
  3. Douglas A. Irwin, 2000. "Tariffs and Growth in Late Nineteenth Century America," NBER Working Papers 7639, National Bureau of Economic Research, Inc.
  4. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
  5. Meissner, Christopher M., 2014. "Growth from Globalization? A View from the Very Long Run," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 8, pages 1033-1069 Elsevier.
  6. David Prentice, 2006. "A re-examination of the origins of American industrial success," Working Papers 2006.02, School of Economics, La Trobe University.
  7. Adrian Wood, 2006. "Making globalisation work for the poor: The 2000 White Paper Reconsidered," Working Papers id:501, eSocialSciences.
  8. Irwin, Douglas A., 2000. "Could the United States Iron Industry Have Survived Free Trade after the Civil War?," Explorations in Economic History, Elsevier, vol. 37(3), pages 278-299, July.
  9. David Prentice, 2012. "The rise of the US Portland cement industry and the role of public science," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(2), pages 163-192, May.
  10. Kanda Naknoi, 2008. "Tariffs and the Expansion of the American Pig Iron Industry, 1870-1940," Purdue University Economics Working Papers 1214, Purdue University, Department of Economics.
  11. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.

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