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The Structure of Protection and Growth in the Late 19th Century

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

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14493.

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Date of creation: Nov 2008
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Publication status: published as May 2011, Vol. 93, No. 2, Pages 606-616 Posted Online April 26, 2011. (doi:10.1162/REST_a_00104) © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology The Structure of Protection and Growth in the Late Nineteenth Century Sibylle H. Lehmann Universität Köln Kevin H. O'Rourke
Handle: RePEc:nbr:nberwo:14493
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  1. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  2. O'Rourke, Kevin H, 2000. "Tariffs and Growth in the Late 19th Century," Economic Journal, Royal Economic Society, vol. 110(463), pages 456-83, April.
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  8. Temin, Peter, 2002. "The Golden Age of European growth reconsidered," European Review of Economic History, Cambridge University Press, vol. 6(01), pages 3-22, April.
  9. Antonio Tena Junguito, 2008. "Bairoch revisited. Tariff structure and growth in the late 19th century," Working Papers in Economic History wp08-04, Universidad Carlos III, Instituto Figuerola de Historia y Ciencias Sociales.
  10. Alan M. Taylor, 1996. "Sources of Convergence in the Late Nineteenth Century," NBER Working Papers 5806, National Bureau of Economic Research, Inc.
  11. Irwin, Douglas A., 1993. "Free Trade and Protection in Nineteenth-Century Britain and France Revisited: A Comment on Nye," The Journal of Economic History, Cambridge University Press, vol. 53(01), pages 146-152, March.
  12. Douglas A. Irwin, 2002. "Did Import Substitution Promote Growth in the Late Nineteenth Century?," NBER Working Papers 8751, National Bureau of Economic Research, Inc.
  13. Nye, John Vincent, 1991. "The Myth of Free-Trade Britain and Fortress France: Tariffs and Trade in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 51(01), pages 23-46, March.
  14. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, June.
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