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Tariff History Lessons from the European Periphery. Protection Intensity and the Infant Industry Argument in Spain and Italy 1870-1930

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  • Antonio Tena Junguito

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Abstract

This paper endeavors to study Spanish protectionism on the Italian mirror. On the assumption that literature present both European peripheral countries at a similar stage of development that reacted with a similar protectionist reply to late 19th century economic globalization. Nevertheless, competitiveness and specialization of the respective industrial structures were quite different, as the manufacture export performance in the two countries shows since the turn of the century. This paper will emphasize the existence of significant different protection policies in Spain and Italy between 1860-1930 as an influential variable. The analysis of the quantitative evidence characterize the Italian and Spanish protectionist as low and fiscal versus high and manufacture respectively. The paper develop a new test on the infant industry argument for Spain and Italy which aims at measuring the dynamic effects produced by protection on both economies.

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Paper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number wp06-08.

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Date of creation: Sep 2006
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Handle: RePEc:cte:whrepe:wp06-08

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  1. Federico, Giovanni & Tena, Antonio, 1998. "Was Italy a protectionist country?," European Review of Economic History, Cambridge University Press, vol. 2(01), pages 73-97, April.
  2. Molinas, Cesar & de la Escosura, Leandro Prados, 1989. "Was Spain different? Spanish historical backwardness revisited," Explorations in Economic History, Elsevier, vol. 26(4), pages 385-402, October.
  3. O'Rourke, Kevin H, 2000. "Tariffs and Growth in the Late 19th Century," Economic Journal, Royal Economic Society, vol. 110(463), pages 456-83, April.
  4. McCloskey, Donald N., 1980. "Magnanimous albion: Free trade and British national income, 1841-1881," Explorations in Economic History, Elsevier, vol. 17(3), pages 303-320, July.
  5. Harrison, Ann E, 1994. "An Empirical Test of the Infant Industry Argument: Comment," American Economic Review, American Economic Association, vol. 84(4), pages 1090-95, September.
  6. Baldwin, R E & Murray, Tracy, 1977. "MFN Tariff Reductions and Developing Country Trade Benefits under the GSP," Economic Journal, Royal Economic Society, vol. 87(345), pages 30-46, March.
  7. Douglas A. Irwin, 2000. "Tariffs and Growth in Late Nineteenth Century America," NBER Working Papers 7639, National Bureau of Economic Research, Inc.
  8. Krueger, Anne O, 1997. "Trade Policy and Economic Development: How We Learn," American Economic Review, American Economic Association, vol. 87(1), pages 1-22, March.
  9. Fraile, Pedro & Escribano, Alvaro, 1998. "The Spanish 1898 Disaster: The Drift towards Natonal-Protectionism," Revista de Historia Económica, Cambridge University Press, vol. 16(01), pages 265-290, March.
  10. Douglas A. Irwin, 2002. "Interpreting the Tariff-Growth Correlation of the Late Nineteenth Century," NBER Working Papers 8739, National Bureau of Economic Research, Inc.
  11. Krueger, Anne O & Tuncer, Baran, 1982. "An Empirical Test of the Infant Industry Argument," American Economic Review, American Economic Association, vol. 72(5), pages 1142-52, December.
  12. Douglas A. Irwin, 2002. "Did Import Substitution Promote Growth in the Late Nineteenth Century?," NBER Working Papers 8751, National Bureau of Economic Research, Inc.
  13. O'Rourke, Kevin H., 1997. "Measuring protection: a cautionary tale," Journal of Development Economics, Elsevier, vol. 53(1), pages 169-183, June.
  14. Blanca Sánchez-Alonso, 2000. "European emigration in the late nineteenth century: the paradoxical case of Spain," Economic History Review, Economic History Society, vol. 53(2), pages 309-330, 05.
  15. Prados de la Escosura, Leandro, 2000. "International Comparisons of Real Product, 1820-1990: An Alternative Data Set," Explorations in Economic History, Elsevier, vol. 37(1), pages 1-41, January.
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