Import tariffs: the neutralization of the Dutch disease argument

Luiz Carlos Bresser-Pereira ()

Brazilian Journal of Political Economy, 2023, vol. 43, issue 1, 299-303

Abstract: In economics, there is just one argument legitimising import tariffs – the infantindustry argument –, but it ceases to be valid as the required learning time ends. This noteoffers a second argument: the neutralisation of the Dutch disease argument. If the countryfaces this competitive disadvantage, import tariffs and export subsidies may be a way ofcircumventing the problem. Many countries that industrialised were only successful becausethey pragmatically neutralised the disease with import tariffs. JEL Classification: F10; F43.

Keywords: Infant industry; Dutch disease; import tariffs; neutralisation (search for similar items in EconPapers)
Date: 2023
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