Should Countries Worry About Immiserizing Growth?

Stephen Tokarick

No 332133, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In the presence of tariff protection, Johnson (1967) showed that factor accumulation in a two-good, two-factor model could reduce a country’s real income if it is biased sufficiently toward production of the tariff-protected good. This paper examines the exact conditions under which immiserization could occur in models with more than two goods or factors. In general, adding more goods beyond two seems to reduce the likely of immiserizing growth. This paper also examines how a country’s tariff structure affects the likelihood that it would suffer immiserization. In general, immiserization is more likely the further apart, i.e. the greater the degree of tariff dispersion. This result provides an additional rationale for adopting a uniform tariff structure.

Keywords: International Relations/Trade; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 27
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/332133/files/5321.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332133

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().