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Trade Protection in India: Economics vs. Politics?

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Author Info

  • Ira N. Gang

    ()
    (Rutgers University)

  • Mihir Pandey

    (Ramjas College, Delhi)

Abstract

This paper investigates economic and political determinants of protection across the secondary (manufacturing) sector. Economic factors can be summarized by the infant industry argument and we expect industries which are relatively efficient compared to the rest-of-the-world to have low levels of protection. Moreover, the degree of protection should change as the relative efficiency of an industry changes over time. Political factors reflect pressure group politics: relatively inefficient industries may enjoy a great deal of protection because of political lobbying.

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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199616.

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Date of creation: 16 Aug 1996
Date of revision:
Handle: RePEc:rut:rutres:199616

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Related research

Keywords: Effective Rate of Protection; Liberalization; Political Economy; Protection; Trade;

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Cited by:
  1. Edmonds, Eric V & Pavcnik, Nina & Topalova, Petia, 2008. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," CEPR Discussion Papers 6772, C.E.P.R. Discussion Papers.
  2. Petia Topalova, 2005. "Trade Liberalization, Poverty, and Inequality: Evidence from Indian Districts," NBER Working Papers 11614, National Bureau of Economic Research, Inc.
  3. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 125(4), pages 1727-1767, November.
  4. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 1-41, October.
  5. Ira N. Gang, 1997. "Published and Realized Tariffs: the Weak Link," Departmental Working Papers 199620, Rutgers University, Department of Economics.
  6. Eric V. Edmonds & Nina Pavcnik & Petia Topalova, 2007. "Trade Adjustment and Human Capital Investment," IMF Working Papers 07/94, International Monetary Fund.

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