A rehabilitation of effective protection

Roy Ruffin

Journal of International Trade & Economic Development, 2008, vol. 17, issue 3, pages 333-342

Abstract: This note argues that the declining interest in the theory of effective protection is not justified, shows how the existence of intermediate goods affects the basic economics of tariffs, gives a simple proof of the symmetry of export subsidies and import duties with intermediate goods, and then applies the theory to analyze a potential route to free trade that could have minimal objections from special interests.

Keywords: effective production; intermediate goods; Lerner-Ricardo symmetry (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:17:y:2008:i:3:p:333-342

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