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The Last Free Traders? Interwar Trade Policy in the Netherlands and Netherlands East Indies

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  • de Zwart, Pim
  • Lampe, Markus
  • O'Rourke, Kevin

Abstract

There has still been too little detailed work on the protectionism that emerged in the wake of the Great Depression. In this paper we explore the experiences of two countries that have been largely neglected in the literature, the Netherlands and Netherlands East Indies (NEI). How did these traditionally free- trading economies respond to the Depression? We construct a detailed product-level database of tariff and non-tariff barriers to trade based on primary sources. While ad valorem tariff increases in the Netherlands were largely due to deflation, the country protected agriculture and textiles in a number of ways. Once quotas are taken into account, trade restrictiveness indices suggest that protection in the Netherlands and NEI was comparable to protection in the UK and India respectively. The NEI quota system was largely geared to protecting Dutch exporters, and succeeded in doing so, but the reverse was not true.

Suggested Citation

  • de Zwart, Pim & Lampe, Markus & O'Rourke, Kevin, 2022. "The Last Free Traders? Interwar Trade Policy in the Netherlands and Netherlands East Indies," CEPR Discussion Papers 17765, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17765
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    2. Alejandro Ayuso-Díaz & Antonio Tena-Junguito, 2024. "US and Japan rivalry in Philippine interwar import manufactures market. Power politics, trade cost and competitiveness," Working Papers 0265, European Historical Economics Society (EHES).

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    JEL classification:

    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism

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