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Measuring protection: a cautionary tale

  • O'Rourke, Kevin H.

The measurement of protection has been a key stumbling block for economists seeking to establish an empirical link between trade policy and growth. This note comments on a theoretically based index of protection recently developed by Anderson and Neary. The index must be calculated within the context of a specific CGE model; Anderson and Neary have found that the index is robust to changes in the elasticities embedded within their model? The note identifies one historical instance where the index is extremely sensitive to the specification of the model's demand side. There are important methodological lessons to be learnt from this example.

(This abstract was borrowed from another version of this item.)

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File URL: http://www.sciencedirect.com/science/article/pii/S0304-3878(97)00009-6
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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 53 (1997)
Issue (Month): 1 (June)
Pages: 169-183

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Handle: RePEc:eee:deveco:v:53:y:1997:i:1:p:169-183
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  1. Anderson, James E, 1995. "Tariff-Index Theory," Review of International Economics, Wiley Blackwell, vol. 3(2), pages 156-73, June.
  2. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
  3. Anderson, James E & Neary, J Peter, 1994. "The Trade Restrictiveness of the Multi-fibre Arrangement," World Bank Economic Review, World Bank Group, vol. 8(2), pages 171-89, May.
  4. Edward E. Leamer, 1988. "Measures of Openness," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 145-204 National Bureau of Economic Research, Inc.
  5. Nye, John Vincent, 1991. "The Myth of Free-Trade Britain and Fortress France: Tariffs and Trade in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 51(01), pages 23-46, March.
  6. Irwin, Douglas A., 1993. "Free Trade and Protection in Nineteenth-Century Britain and France Revisited: A Comment on Nye," The Journal of Economic History, Cambridge University Press, vol. 53(01), pages 146-152, March.
  7. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
  8. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
  9. James E. Anderson & J. Peter Neary, 1993. "Measuring the restrictiveness of trade policy," Working Papers 199307, School of Economics, University College Dublin.
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