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A necessary first test for the creation of an infant industry


  • Fishburn, Geoffrey


It has long been appreciated that any country wishing to develop by means of fostering the growth of an infant industry must be prepared to trade off a temporary loss of welfare for the greater long-term gain when the candidate industry has matured. But the application of an observation by Murray C. Kemp (Kemp, 2003) now alerts us to the possibility that intervention in trade, such as in the case examined here of bringing the candidate (import-competing) industry to a desired level of output from which growth can proceed autonomously, might not be sustainable. Whether this can be done is the first test which must be applied to any proposal for infant-industry status.

Suggested Citation

  • Fishburn, Geoffrey, 2011. "A necessary first test for the creation of an infant industry," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 1(3), pages 303-306.
  • Handle: RePEc:gok:ijdcv1:v:1:y:2011:i:3:p:303-306

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