Fishing Downstream: The Political Economy of Effective Administered Protection

Robert Feinberg and Seth Kaplan

Canadian Journal of Economics, 1993, vol. 26, issue 1, 150-58

Abstract: It is common knowledge that consuming (downstream) industries are harmed by import barriers placed on primary or intermediate (upstream) products. The authors empirically examine th e natural result of these forces: the flow of protection, winding its way downstream. After first discussing the effects of upstream protecti on on the supply and demand for protection downstream, the authors exam ine recent trends in U.S. antidumping and countervailing duty cases in t wo major industry sectors, metals and chemicals, which between them fil ed more than 70 percent of all such cases. In both chemicals and metals, the tendency for upstream import protection to spread downstream is observed.

Date: 1993
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