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The Political Market for Protection in Industrial Countries

In: Protection, Cooperation, Integration and Development

Author

Listed:
  • Kym Anderson
  • Robert E. Baldwin

Abstract

One of the strongest conclusions following from neoclassical trade theory is that protection of domestic industries from import competition generally lowers average real income in a country unless that country’s trade volume is so large that changes in it affect international prices. Why, then, is protection so pervasive? Is it because some individuals and groups in society are more politically powerful than others and so are able to influence policies in their favour despite undesired costs to the rest of the community? Or is it that in granting protection governments are reflecting the preferences of the community and government officials in assisting certain industries for such ‘non-economic’ reasons as maintaining employment in those otherwise declining industries?1

Suggested Citation

  • Kym Anderson & Robert E. Baldwin, 1987. "The Political Market for Protection in Industrial Countries," Palgrave Macmillan Books, in: Ali M. El-Agraa (ed.), Protection, Cooperation, Integration and Development, chapter 2, pages 20-36, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-09370-0_2
    DOI: 10.1007/978-1-349-09370-0_2
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    Citations

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    Cited by:

    1. Celik, Levent & Karabay, Bilgehan & McLaren, John, 2013. "Trade policy-making in a model of legislative bargaining," Journal of International Economics, Elsevier, vol. 91(2), pages 179-190.
    2. Ulus Aysegul & Yildiz Halis M., 2012. "On the Relationship between Tariff Levels and the Nature of Mergers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-40, December.
    3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    4. Hadi Salehi Esfahani & Stephanie Leaphart, 2000. "Estimating Trade Policy Models: An Empirical Study of Protection Policy in Turkey," Econometric Society World Congress 2000 Contributed Papers 0563, Econometric Society.
    5. Hashai, Niron & Buckley, Peter J., 2021. "The effect of within-country inequality on international trade and investment agreements," International Business Review, Elsevier, vol. 30(6).
    6. Richard Damania & Per Fredriksson & Thomas Osang, 2004. "Collusion, Collective Action and Protection: Theory and Evidence," Public Choice, Springer, vol. 121(3), pages 279-308, February.
    7. Rodrik, Dani, 1994. "What does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?," CEPR Discussion Papers 1039, C.E.P.R. Discussion Papers.
    8. Anderson, Kym, 1995. "The political economy of coal subsidies in Europe," Energy Policy, Elsevier, vol. 23(6), pages 485-496, June.

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