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Trade Protection in India: Economics vs. Politics?

Author

Listed:
  • Ira N. Gang

    () (Rutgers University)

  • Mihir Pandey

    (Ramjas College, Delhi)

Abstract

This paper investigates economic and political determinants of protection across the secondary (manufacturing) sector. Economic factors can be summarized by the infant industry argument and we expect industries which are relatively efficient compared to the rest-of-the-world to have low levels of protection. Moreover, the degree of protection should change as the relative efficiency of an industry changes over time. Political factors reflect pressure group politics: relatively inefficient industries may enjoy a great deal of protection because of political lobbying.

Suggested Citation

  • Ira N. Gang & Mihir Pandey, 1996. "Trade Protection in India: Economics vs. Politics?," Departmental Working Papers 199616, Rutgers University, Department of Economics.
  • Handle: RePEc:rut:rutres:199616
    as

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    File URL: http://www.sas.rutgers.edu/virtual/snde/wp/1996-16.pdf
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    Citations

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    Cited by:

    1. Eric V. Edmonds & Nina Pavcnik & Petia Topalova, 2010. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 42-75, October.
    2. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters,in: Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
    3. Ira N. Gang, 1997. "Published and Realized Tariffs: the Weak Link," Departmental Working Papers 199620, Rutgers University, Department of Economics.
    4. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 1-41, October.
    5. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1727-1767.
    6. repec:pri:cepsud:192goldberg is not listed on IDEAS

    More about this item

    Keywords

    Effective Rate of Protection; Liberalization; Political Economy; Protection; Trade;

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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