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Import tariffs: the neutralization of the Dutch disease argument

Author

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  • Luiz Carlos Bresser-Pereira

Abstract

In economics, there is just one argument legitimising import tariffs – the infantindustry argument –, but it ceases to be valid as the required learning time ends. This noteoffers a second argument: the neutralisation of the Dutch disease argument. If the countryfaces this competitive disadvantage, import tariffs and export subsidies may be a way ofcircumventing the problem. Many countries that industrialised were only successful becausethey pragmatically neutralised the disease with import tariffs. JEL Classification: F10; F43.

Suggested Citation

  • Luiz Carlos Bresser-Pereira, 2023. "Import tariffs: the neutralization of the Dutch disease argument," Brazilian Journal of Political Economy, Center of Political Economy, vol. 43(1), pages 299-303.
    • Handle: RePEc:ekm:repojs:v:43:y:2023:i:1:p:299-303:id:2397
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2397/2335
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    More about this item

    Keywords

    Infant industry; Dutch disease; import tariffs; neutralisation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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