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Tariff growth paradox between 1850 and 1913: a critical survey (In French)

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  • Stéphane BECUWE (GREThA, CNRS, UMR 5113)
  • Bertrand BLANCHETON (GREThA, CNRS, UMR 5113
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    Abstract

    This article offers a critical analysis of the many contributions on ‘tariff-growth paradox’ (or Bairoch paradox) since 1972. The publication in 2000 of O\'Rourke paper’s has reconsidered the debate on the linkages between trade policy and economic growth between 1870 and 1914. The question was explored using new econometric techniques, often in the background of new theoretical foundations for growth. The results converge to a positive correlation between tariffs and growth for European countries most advanced and European Offshoots (such as Canada, Australia, Argentina…). Two tracks are converging explanatory priority: the quality of institutions of its country and the ability to choose the protected areas (bearing strong externalities). But this hypothesis of the relevance of sectoral protectionism hardly be validated by the analysis in terms of effective protection, which remains very fragmented, study only a few sectors, a few historical landmarks and do not in existence at the time of a tariff dispersion by origin of goods.

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    Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2011-24.

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    Date of creation: 2011
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    Handle: RePEc:grt:wpegrt:2011-24
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    Keywords: trade policy; tariff; effective protection; history of globalization.;

    Find related papers by JEL classification:

    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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