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Trade policy and industrial development: iron and steel in a small open economy, 18701913

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  • Kris Inwood
  • Ian Keay

Abstract

In this paper we argue that effective tariff protection associated with the 1879 National Policy and the 1887 Tupper tariffs triggered investment in new, technologically advanced blast furnaces that were capable of accommodating rapid output expansion. This conclusion is based on an appreciation of the timing of late nineteenthcentury investments in Canada and their connection to changes in government policy and other demand determinants. In our empirical investigation we use new information on westbound transatlantic freight rates, intracontinental transport costs, and furnacespecific microdata, and we acknowledge the endogenous relationships linking investment to domestic demand, labour costs, and tariffs.

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  • Kris Inwood & Ian Keay, 2013. "Trade policy and industrial development: iron and steel in a small open economy, 18701913," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1265-1294, November.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:4:p:1265-1294
    DOI: 10.1111/caje.12048
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    Cited by:

    1. Alexander, Patrick D. & Keay, Ian, 2019. "Responding to the First Era of Globalization: Canadian Trade Policy, 1870–1913," The Journal of Economic History, Cambridge University Press, vol. 79(3), pages 826-861, September.
    2. Gillian C. Hamilton & Ian Keay & Frank D. Lewis, 2017. "Contributions to Canadian economic history: The last 30 years," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1632-1657, December.
    3. Lane, Nathaniel, 2016. "Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea," SocArXiv 6tqax, Center for Open Science.
    4. Ian Keay, 2019. "Protection for maturing industries: Evidence from Canadian trade patterns and trade policy, 1870–1913," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1464-1496, November.
    5. Alexander, Patrick D. & Keay, Ian, 2018. "A general equilibrium analysis of Canada’s national policy," Explorations in Economic History, Elsevier, vol. 68(C), pages 1-15.
    6. Donn L Feir & Rob Gillezeau & Maggie E C Jones, 2024. "The Slaughter of the Bison and Reversal of Fortunes on the Great Plains," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1634-1670.
    7. Nathaniel Lane, 2020. "The New Empirics of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 209-234, June.
    8. Patrick Alexander & Ian Keay, 2017. "The Welfare Effects of Protection: A General Equilibrium Analysis of Canada’s National Policy," Staff Working Papers 17-18, Bank of Canada.
    9. Brian D. Varian, 2024. "Market integration and a lower-productivity economy: the case of Australian federation and Queensland’s manufacturing sector, 1897–1906," CEH Discussion Papers 06, Centre for Economic History, Research School of Economics, Australian National University.
    10. Harris, Richard & Keay, Ian & Lewis, Frank, 2015. "Protecting infant industries: Canadian manufacturing and the national policy, 1870–1913," Explorations in Economic History, Elsevier, vol. 56(C), pages 15-31.

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    JEL classification:

    • N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913

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