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Does Import Protection Act as Export Promotion? Evidence from the United States

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  • Dick, Andrew R

Abstract

Strategic trade policy theory suggests how import protection can be export-promoting under increasing returns to scale. The author tests this hypothesis for 200 U.S. import-competing industries characterized by varying degrees of increasing returns to scale. After removing political economy endogeneities in tariff and nontariff barriers, targeted import protection most frequently has been export-deterring. Moreover, export deterrence has been greatest in industries displaying the strongest static or dynamic scale economies. These results are consistent with earlier evidence that protection rarely stimulates domestic output and frequently promotes inefficient firm scale and entry. Copyright 1994 by Royal Economic Society.

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  • Dick, Andrew R, 1994. "Does Import Protection Act as Export Promotion? Evidence from the United States," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 83-101, January.
    • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:1:p:83-101
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    Cited by:

    1. Kenji Fujiwara, 2013. "A Win–Win–Win Tariff–Tax Reform under Imperfect Competition," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 857-867, November.
    2. Nakhoda, Aadil, 2012. "The influence of financial leverage of firms on their international trading activities," MPRA Paper 35765, University Library of Munich, Germany.
    3. Holger Breinlich & Elsa Leromain & Dennis Novy & Thomas Sampson, 2021. "Import liberalization as export destruction? Evidence from the United States," CEP Discussion Papers dp1779, Centre for Economic Performance, LSE.
    4. Andrew R. Dick, 1997. "U.S.-Japan Telecommunications Trade Conflicts: The Role of Regulation," NBER Chapters, in: The Effects of US Trade Protection and Promotion Policies, pages 117-158, National Bureau of Economic Research, Inc.

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