Who Benefits from Trade Wars?

Wolfgang Lechthaler and Mariya Mileva ()
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Mariya Mileva: California State University, Long Beach

Intereconomics: Review of European Economic Policy, 2018, vol. 53, issue 1, 22-26

Abstract: Abstract Even though economists keep on emphasising the benefits of international trade, protectionism is on the rise in many industrialised countries. The authors argue that a potential explanation for this phenomenon can be found in the short-run distributional effects of import tariffs: while protectionism hurts the economy from an aggregate perspective (i.e. GDP goes down), unskilled workers in import-competing sectors benefit in the short run and do not lose in the long run. They might therefore lend political support to protectionism.

Date: 2018
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DOI: 10.1007/s10272-018-0714-y

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