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The structure of protection and growth in the late 19th century

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  • Sibylle H. Lehmann and Kevin H. O'Rourke

Abstract

Many papers have explored the relationship between average tariff rates and economic growth, when theory suggests that the structure of protection is what should matter. We therefore explore the relationship between economic growth and agricultural tariffs, industrial tariffs, and revenue tariffs, for a sample of relatively well-developed countries between 1875 and 1913. Industrial tariffs were positively correlated with growth. Agricultural tariffs were negatively correlated with growth, although the relationship was often statistically insignificant at conventional levels. There was no relationship between revenue tariffs and growth.

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  • Sibylle H. Lehmann and Kevin H. O'Rourke, 2008. "The structure of protection and growth in the late 19th century," The Institute for International Integration Studies Discussion Paper Series iiisdp269, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp269
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    2. Carson, Matthew., 2010. "Guiding structural change : the role of government in development," ILO Working Papers 994550973402676, International Labour Organization.
    3. Tena Junguito, Antonio, 2008. "Bairoch revisited : tariff structure and growth in the late 19th century," IFCS - Working Papers in Economic History.WH wp08-04, Universidad Carlos III de Madrid. Instituto Figuerola.
    4. Tena-Junguito, Antonio & Lampe, Markus & Fernandes, Felipe Tã‚Mega, 2012. "How Much Trade Liberalization Was There in the World Before and After Cobden-Chevalier?," The Journal of Economic History, Cambridge University Press, vol. 72(3), pages 708-740, August.
    5. Stéphane BECUWE & Bertrand BLANCHETON, 2011. "Tariff growth paradox between 1850 and 1913: a critical survey (In French)," Cahiers du GREThA (2007-2019) 2011-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Moritz Schularick & Solomos Solomou, 2011. "Tariffs and economic growth in the first era of globalization," Journal of Economic Growth, Springer, vol. 16(1), pages 33-70, March.
    7. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
    8. Crafts, Nicholas, 2011. "British Relative Economic Decline Revisited," CAGE Online Working Paper Series 42, Competitive Advantage in the Global Economy (CAGE).
    9. Broadberry, Stephen; Crafts, Nicholas., 2010. "Openness, Protectionism And Britain’S Productivity Performance Over The Long-Run," CAGE Online Working Paper Series 36, Competitive Advantage in the Global Economy (CAGE).
    10. Ian W. McLean, 2010. "Responding to Shocks: Australia's Institutions and Policies," School of Economics and Public Policy Working Papers 2010-30, University of Adelaide, School of Economics and Public Policy.
    11. Michelangelo Vasta, 2009. "Italian export capacity in the long run perspective (1861-2009): a tortuous path to keep the position," Department of Economics University of Siena 572, Department of Economics, University of Siena.
    12. Crafts, Nicholas & O’Rourke, Kevin Hjortshøj, 2014. "Twentieth Century Growth*This research has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC grant agreement no. 249546.," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 263-346, Elsevier.
    13. Johannes Schwarzer, 2016. "Trade and Employment. An Overview," Discussion Notes 1601, Council on Economic Policies.
    14. Jevan Cherniwchan & Eugene Beaulieu, "undated". "Tariff Structure, Trade Expansion and Canadian Protectionism from 1870-1910," Working Papers 2011-08, Department of Economics, University of Calgary, revised 31 Jan 2011.
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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