Did Import Substitution Promote Growth in the Late Nineteenth Century?
Abstract
The positive correlation between import tariffs and economic growth across countries in the late nineteenth century suggests that tariffs may have played a causal role in promoting growth. This paper seeks to determine if high tariffs stimulated growth by shifting resources out of agriculture and into manufacturing. The most rapidly growing countries were indeed those that reduced the share of employment in agriculture. Tariffs in agricultural exporting (importing) countries may have promoted (retarded) this shift, although two high tariff, high growth, agricultural-exporting outliers (Argentina and Canada) experienced export-oriented growth and did not pursue import substitution policies. This raises the question of whether economic growth led to changes in the structure of employment rather than changes in employment leading to economic growth.Download Info
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8751.Length:
Date of creation: Jan 2002
Date of revision:
Handle: RePEc:nbr:nberwo:8751
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Related research
Keywords:Find related papers by JEL classification:
- F1 - International Economics - - Trade
- N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-02-10 (All new papers)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
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"Measuring Protection Over Time. Revenue And Protective Products In The 19th Century European Tariff Growth Debate,"
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