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Incidence theory and the shifting of protection across sectors: the South Asian experience

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Priniti Panday
Abstract

Using the theoretical framework of a simple general equilibrium model, this paper examines whether strategies aimed at protecting or promoting manufacturing industries indirectly taxed the agricultural and service sectors. A panel data set consisting of five South Asian countries over a 26 year time period is employed in the analysis. Three different estimation procedures are used to account for factors that are country specific and those that are common to all countries. The results indicate that the agricultural sector indirectly felt the brunt of the net protection provided to manufactures due to the 'shifting of protection' across sectors. The service sector, on the other hand, indirectly benefited from the general equilibrium spillover effects.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 2 (January)
Pages: 125-132
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:125-132

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Njinkeu, Dominique, 1996. "Evaluation of the incentive structure: A survey and application to Cameroon," World Development, Elsevier, vol. 24(3), pages 557-568, March. [Downloadable!] (restricted)
  2. Greenaway, David & Milner, Chris R, 1990. "Industrial Incentives, Domestic Resource Costs and Resource Allocation in Madagascar," Applied Economics, Taylor and Francis Journals, vol. 22(6), pages 805-21, June.
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  1. Priniti Panday, 2005. "Trade liberalization and the Labor Market Revisited," International Advances in Economic Research, Springer, vol. 11(4), pages 417-432, November. [Downloadable!] (restricted)
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