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Tariff concessions in the Kennedy Round and the structure of protection in West Germany : An econometric assessment

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  • Riedel, James

Abstract

It is well documented that the structure of tariffs in industrialized countries affords the greatest protection to relatively (unskilled) labor-intensive branches of industry (Constantopoulos3 1974 and references therein). Since we know from the Stolper-Samuelson theorem that this implies an improvement in the relative reward for services of labor, in particular unskilled labo, the political motive for such a tariff policy is obvious. In recent years industrialized countries have loudly proclaimed their dedication to the principles of free-trade and their intent to counterbalance the disadvantageous trade position of the less developed countries. While progress on the latter objective has been modest (Murry, 1973), great gains have been achieved in lowering tariff barriers. The most significant advances in this regard were effected in the GATT Kennedy Round (1963-67), which produced an average 35 percent reduction in tariff levels of non-agricultural products by far and away exceeding any reductions negotiated in previous GATT rounds. An interesting question in light of industrialized countries practised, as well as proclaimed dedication to trade liberalization is whether their tariff policy continues to be designed with labor's short-run interests in mind.
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  • Riedel, James, 1977. "Tariff concessions in the Kennedy Round and the structure of protection in West Germany : An econometric assessment," Journal of International Economics, Elsevier, vol. 7(2), pages 133-143, May.
  • Handle: RePEc:eee:inecon:v:7:y:1977:i:2:p:133-143
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    Cited by:

    1. Grossman, Gene M & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 675-708, August.
    2. Karacaovali, Baybars & Limão, Nuno, 2008. "The clash of liberalizations: Preferential vs. multilateral trade liberalization in the European Union," Journal of International Economics, Elsevier, vol. 74(2), pages 299-327, March.
    3. Karacaovali, Baybars & Limao, Nuno, 2005. "The clash of liberalizations : preferential versus multilateral trade liberalization in the European Union," Policy Research Working Paper Series 3493, The World Bank.
    4. Weiss, Frank Dietmar & Heitger, Bernhard & Jüttemeier, Karl-Heinz & Kirkpatrick, Grant & Klepper, Gernot, 1988. "Trade policy in West Germany," Open Access Publications from Kiel Institute for the World Economy 374, Kiel Institute for the World Economy (IfW).
    5. Theodore Hitiris, 1979. "The impact of protection and concentration on the labour intensity of U.K. industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 115(4), pages 670-679, December.
    6. Ahmad, Jaleel, 1979. "Diversion et création d’échanges commerciaux dans le cadre du système canadien de préférences tarifaires," L'Actualité Economique, Société Canadienne de Science Economique, vol. 55(1), pages 68-81, janvier.
    7. Gerken, Egbert & Gross, Martin & Lächler, Ulrich, 1984. "The causes and consequences of steel subsidization in Germany," Kiel Working Papers 214, Kiel Institute for the World Economy (IfW).
    8. Oscar Bajo & Angel Torres, 1991. "Los determinantes de la protección en la industria manufacturera española," Investigaciones Economicas, Fundación SEPI, vol. 15(2), pages 457-480, May.
    9. Wolter, Frank, 1977. "Perspectives for the international location of the steel industry," Kiel Working Papers 60, Kiel Institute for the World Economy (IfW).

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