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Cost of Protection where do we stand?

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  • Arvind Panagariya

    (University of Maryland)

Abstract

Economists measure the cost of protection in terms of static efficiency, growth rates and firm- or industry-level productivity effects. This survey is devoted exclusively to the literature on the static efficiency. A key preliminary point to note is that estimates in this literature are not derived econometrically from pre- and post- liberalization data. Instead, they are based on simulations of partial- or general-equilibrium models that are parameterized using estimates from the literature and calibrated around a pre-liberalization base year. This paper explores alternate measures of protection and thei welfare costs.

Suggested Citation

  • Arvind Panagariya, 2003. "Cost of Protection where do we stand?," International Trade 0308003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0308003
    Note: Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; pages: 345,395,4323247 ; figures: included/request from author/draw your own
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    References listed on IDEAS

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    1. Joel Bergsman, 1974. "Commercial Policy, Allocative Efficiency, and "X-Efficiency"," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(3), pages 409-433.
    2. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
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    4. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    5. Arvind Panagariya, 2003. "Alternative Approaches to Measuring the Cost of Protection," International Trade 0308002, University Library of Munich, Germany.
    6. Harry G. Johnson, 1960. "The Cost of Protection and the Scientific Tariff," Journal of Political Economy, University of Chicago Press, vol. 68(4), pages 327-327.
    7. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    8. Douglas A. Irwin, 2001. "The Welfare Cost of Autarky: Evidence from the Jeffersonian Trade Embargo, 1807-1809," NBER Working Papers 8692, National Bureau of Economic Research, Inc.
    9. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    10. Robert C. Feenstra, 1992. "How Costly Is Protectionism?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 159-178, Summer.
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    Citations

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    Cited by:

    1. Arvind Panagariya, 2004. "India’s Trade Reform: Progress, Impact and Future Strategy:," International Trade 0403004, University Library of Munich, Germany.
    2. Sherrill Shaffer & Jason Shogren, 2008. "Infinitely repeated contests: How strategic interaction affects the efficiency of governance," Regulation & Governance, John Wiley & Sons, vol. 2(2), pages 234-252, June.
    3. Carmen Fillat & Eva Pardos, 2007. "Alternative measures for trade restrictiveness. A gravity approach," Documentos de Trabajo dt2007-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Juan José Echavarría & Iader Giraldo & Fernando Jaramillo, 2019. "Cadenas globales de valor, crecimiento y protección arancelaria en Colombia," Borradores de Economia 1080, Banco de la Republica de Colombia.
    5. Idrisov, Georgy (Идрисов, Георгий) & Ponomareva, Ekaterina (Пономарева, Екатерина), 2016. "Analysis of the Efficiency of Natural Monopolies in Russia [Анализ Эффективности Работы Естественных Монополий В России]," Working Papers 2041, Russian Presidential Academy of National Economy and Public Administration.
    6. Ekaterina Aleksandrovna Ponomareva, 0. "Tariff Policy for Subjects of Natural Monopolies and Competitiveness of the Russian Economy," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 6.
    7. Georgy Idrisov, 2016. "Towards modern industrial policy for Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 169P, pages 157-157.
    8. Douglas A. Irwin, 2007. "Trade Restrictiveness and Deadweight Losses from U.S. Tariffs, 1859-1961," NBER Working Papers 13450, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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