Infant Industry Protection and the Growth of Canada's Cotton Mills: A Test of the Chang Hypothesis
I argue that the 19th century Canadian cotton textile industry was an extremely successful infant industry. Judging the industry’s performance by seven widely-employed measures of success – growth in output, contemporary opinion, size, the use of the most modern machinery, exports, and relative total factor productivity – it is shown that the growth of Canada’s cotton mills provides strong support for Chang’s provocative hypothesis that infant industry protection was the way the rich countries of today grew rich in the nineteenth century.
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- Easton, Stephen T. & Gibson, William A. & Reed, Clyde G., 1988. "Tariffs and growth: The dales hypothesis," Explorations in Economic History, Elsevier, vol. 25(2), pages 147-163, April.
- Kris Inwood & Ian Keay, 2006. "Assessing Economic Performance among North American Manufacturing Establishments, 1870/71: Data, Methodology and Measurement Issues," Working Papers 1030, Queen's University, Department of Economics.
- Harley, C. Knick, 2001. "The Antebellum Tariff: Different Products Or Competing Sources? A Comment On Irwin And Temin," The Journal of Economic History, Cambridge University Press, vol. 61(03), pages 799-805, September.
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