Political Economy of Protection to Australian Manufacturing: Further Results

R. Ratnayake
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R. Ratnayake: University of Auckland

Economic Analysis and Policy, 1993, vol. 23, issue 1, 29-44

Abstract: This study examines the determinants of inter-industry variation of tariff protection to Australian manufacturing using a simultaneous equations model incorporating various political-economic factors derived from both ‘interest group’ and ‘public interest’ models. The results shed some light on the degree of bias which may have been involved in the previous empirical results of single equation models which ignored simultaneity in the basic relationships under consideration. The study has also identified some new factors which exert strong influence in determining the levels of protection.

Date: 1993
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