This paper investigates the relationship between tariff and growth in the Australian economy over the period from 1871 to 2002. The study is motivated by the debate on the apparent 'tariff-growth paradox', a sign switch in the link between tariff rate and growth between the first and second episodes of globalization in world history, established from cross-country growth regressions. The long annual time series together with the recent developments in time series econometrics allows us to establish an unambiguous and stable negative relationship between tariff rates and economic growth. It is of course not possible to generalize from a single country case, but our results do cast significant doubts on the 'tariff-growth paradox' reported in recent cross-country studies.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number
2007-08.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General O56 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
This paper has been announced in the following NEP Reports: