Inter-Industrial Externality, Production Effects and Theory of International Trade

Hansang Lee
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Hansang Lee: Hankuk University of Foreign Studies

Indian Economic Review, 1996, vol. 31, issue 1, 91-99

Abstract: This paper shows that under certain conditions protection given to the industrial sector (by a tariff, for instance) which depends on the externality generated by the agricultural sector may not achieve its desired objectives and may, in the short run, cause instability in the adjustment process. This is particularly true in a small open economy where agriculture occupies a less significant position in the economy both in the absolute and relative sense.

JEL-codes: D62 F14 (search for similar items in EconPapers)
Date: 1996
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