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

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

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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  2. Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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  26. Magee, Christopher, 2002. "Endogenous trade policy and lobby formation: an application to the free-rider problem," Journal of International Economics, Elsevier, vol. 57(2), pages 449-471, August.
  27. Stéphane BECUWE (GREThA, CNRS, UMR 5113) & Bertrand BLANCHETON (GREThA, CNRS, UMR 5113), 2011. "Tariffs dispersion in France between 1850 and 1913, contribution to tariff growth paradox (In French)," Cahiers du GREThA 2011-21, Groupe de Recherche en Economie Théorique et Appliquée.
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