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Asymmetries in Policy Between Exportables and Import-Competing Goods

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  • Anne O. Krueger
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    Abstract

    This paper reexamines current understanding of the political economy of protection. To date, work has centered on determinants of the height of protection and its form - tariffs, quantitative restrictions, and voluntary export restraints. It is argued that examining the structure of protection misses one important piece of evidence - why import-competing industries tend to be more highly protected than industries producing exportables. When the question is cast in this light, a number of new insights emerge, including the importance of earlier protective measures in influencing current protectionist pressures. "Identity bias", whereby political decisions can be asymmetric between winners and losers, depending on whose identity is known, is introduced.

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    File URL: http://www.nber.org/papers/w2904.pdf
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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2904.

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    Date of creation: Apr 1990
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    Publication status: published as The Political Economy of International Trade: Essays in Honor of Robert E. Baldwin. edited by Ronald W. Jones and Anne O. Krueger, pp. 161-178. Oxford: Basil Blackwell, 1990.
    Handle: RePEc:nbr:nberwo:2904

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    1. Baldwin, Robert E, 1969. "The Case against Infant-Industry Tariff Protection," Journal of Political Economy, University of Chicago Press, vol. 77(3), pages 295-305, May/June.
    2. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573.
    3. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
    4. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
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    Cited by:
    1. Peter Nedergaard, 2009. "European Union Import Quotas on Chinese Textile and Clothing Exports in 2005: A Panic-Driven Commission or Rational Explanations?," Journal of Industry, Competition and Trade, Springer, vol. 9(1), pages 17-47, March.
    2. Florian Mayneris & Thierry Mayer & Philippe Martin, 2011. "Public support to clusters. A firm level study of french 'local productive systems'," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
    3. Olper, Alessandro & Raimondi, Valentina, 2013. "Electoral rules, forms of government and redistributive policy: Evidence from agriculture and food policies," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 141-158.
    4. Raquel Fernandez & Dani Rodrik, 1990. "Why is Trade Reform so Unpopular? On Status Quo Bias in Policy Reforms," Boston University - Institute for Economic Development 8, Boston University, Institute for Economic Development.
    5. Richard E. Baldwin & Frédéric Robert-Nicoud, 2007. "Entry and Asymmetric Lobbying: Why Governments Pick Losers," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 1064-1093, 09.
    6. A. U. Santos-Paulino, 2002. "Trade Liberalisation and Export Performance in Selected Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 140-164.
    7. Vanberg, Viktor, 1990. "A Constitutional Political Economy Perspective on International Trade," 1990: The Environment, Government Policies, and International Trade Meeting, December 1990, San Diego, CA 50875, International Agricultural Trade Research Consortium.
    8. Levy, Philip I., 1999. "Lobbying and international cooperation in tariff setting," Journal of International Economics, Elsevier, vol. 47(2), pages 345-370, April.
    9. Peter Nedergaard, 2006. "Market Failures and Government Failures: A Theoretical Model of the Common Agricultural Policy," Public Choice, Springer, vol. 127(3), pages 385-405, June.
    10. Patricio Meller, 2009. "From unilateral liberalization to regional free trade agreements: a Latin America perspective," Economic Change and Restructuring, Springer, vol. 42(1), pages 85-103, May.

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