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The Effects of Protection on the Factor Content of Japanese and American Foreign Trade

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  • Staiger, Robert W
  • Deardorff, Alan V
  • Stern, Robert M

Abstract

Data on pre-Tokyo Round tariffs and ad valorem approximations of nontariff barriers are used in the Michigan Computational Model of World Production and Trade to calculate changes in commodity trade attributable to protection in Japan and the United States. Data on factor requirements in production are then used to calculate the factor contents of these computed changes in trade. Results indicate that Japanese protection is more distortionary of factor markets in Japan and the United States than is American protection, and that U.S. manufacturing labor would be the least likely to gain from trade liberalization in Japan and/or the United States. Copyright 1988 by MIT Press.

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  • Staiger, Robert W & Deardorff, Alan V & Stern, Robert M, 1988. "The Effects of Protection on the Factor Content of Japanese and American Foreign Trade," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 475-483, August.
    • Handle: RePEc:tpr:restat:v:70:y:1988:i:3:p:475-83
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    Cited by:

    1. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, vol. 82(2), pages 195-207, November.
    2. William Milberg, 1999. "The Rhetoric of Policy Relevance in International Economics," Macroeconomics 9904009, University Library of Munich, Germany.

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