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Cost of Protection: Where Do We Stand?

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  • Arvind Panagariya

Abstract

Economists measure the cost of protection in terms of static efficiency, growth rates and firm- or industry-level productivity effects. This survey is devoted exclusively to the literature on the static efficiency. A key preliminary point to note is that estimates in this literature are not derived econometrically from pre- and post- liberalization data. Instead, they are based on simulations of partial- or general-equilibrium models that are parameterized using estimates from the literature and calibrated around a pre-liberalization base year. This paper explores alternate measures of protection and thei welfare costs.
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Suggested Citation

  • Arvind Panagariya, 2002. "Cost of Protection: Where Do We Stand?," American Economic Review, American Economic Association, vol. 92(2), pages 175-179, May.
    • Handle: RePEc:aea:aecrev:v:92:y:2002:i:2:p:175-179
    Note: DOI: 10.1257/000282802320189203
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    References listed on IDEAS

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    1. Arvind Panagariya, 2003. "Alternative Approaches to Measuring the Cost of Protection," International Trade 0308002, University Library of Munich, Germany.
    2. Douglas A. Irwin, 2001. "The Welfare Cost of Autarky: Evidence from the Jeffersonian Trade Embargo, 1807-1809," NBER Working Papers 8692, National Bureau of Economic Research, Inc.
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    5. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    6. Harry G. Johnson, 1960. "The Cost of Protection and the Scientific Tariff," Journal of Political Economy, University of Chicago Press, vol. 68(4), pages 327-327.
    7. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    8. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    9. Robert C. Feenstra, 1992. "How Costly Is Protectionism?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 159-178, Summer.
    10. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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    Cited by:

    1. Juan José Echavarría & Iader Giraldo-Salazar & Fernando Jaramillo-Mejía, 2019. "Cadenas globales de valor, crecimiento y protección arancelaria en Colombia," Chapters, in: Jorge García-García & Enrique Montes-Uribe & Iader Giraldo-Salazar (ed.), Comercio exterior en Colombia: política, instituciones, costos y resultados, chapter 2, pages 75-115, Banco de la Republica de Colombia.
    2. Arvind Panagariya, 2004. "India’s Trade Reform: Progress, Impact and Future Strategy:," International Trade 0403004, University Library of Munich, Germany.
    3. Idrisov, Georgy (Идрисов, Георгий) & Ponomareva, Ekaterina (Пономарева, Екатерина), 2016. "Analysis of the Efficiency of Natural Monopolies in Russia [Анализ Эффективности Работы Естественных Монополий В России]," Working Papers 2041, Russian Presidential Academy of National Economy and Public Administration.
    4. Sherrill Shaffer & Jason Shogren, 2008. "Infinitely repeated contests: How strategic interaction affects the efficiency of governance," Regulation & Governance, John Wiley & Sons, vol. 2(2), pages 234-252, June.
    5. Ekaterina Aleksandrovna Ponomareva, 0. "Tariff Policy for Subjects of Natural Monopolies and Competitiveness of the Russian Economy," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 6.
    6. Georgy Idrisov, 2016. "Towards modern industrial policy for Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 169P, pages 157-157.
    7. Douglas A. Irwin, 2007. "Trade Restrictiveness and Deadweight Losses from U.S. Tariffs, 1859-1961," NBER Working Papers 13450, National Bureau of Economic Research, Inc.
    8. Carmen Fillat & Eva Pardos, 2007. "Alternative measures for trade restrictiveness. A gravity approach," Documentos de Trabajo dt2007-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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