Did Late-Nineteenth-Century U.S. Tariffs Promote Infant Industries? Evidence from the Tinplate Industry
AbstractDid 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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Bibliographic InfoArticle provided by Cambridge University Press in its journal The Journal of Economic History.
Volume (Year): 60 (2000)
Issue (Month): 02 (June)
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- Irwin, Douglas A., 2000. "Did Late-Nineteenth-Century U S. Tarriffs Promote Infant Industries? Evidence From the Tinplate Industry," The Journal of Economic History, Cambridge University Press, vol. 60(02), pages 335-360, June.
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