Revisiting the tariff‐growth correlation: The Australasian colonies, 1866–1900

Brian Varian

Australian Economic History Review, 2022, vol. 62, issue 1, 47-65

Abstract: This article tests for the presence of a tariff‐growth correlation among the seven tariff‐autonomous colonies of late‐nineteenth‐century Australasia, making use of several colony‐specific macroeconomic series that have only recently become available. Introducing tariffs to a convergence model yields no evidence of an association between tariffs and growth among the Australasian colonies. This finding is unaltered when the tariff variable is replaced by a purposefully constructed proxy variable for the tariff on manufactures specifically. Additionally, this article finds little evidence that tariffs induced an intersectoral adjustment into manufacturing.

Date: 2022
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