The determinants of technological protectionism

Vasanthakumar Bhat

Applied Economics Letters, 1996, vol. 3, issue 4, 281-283

Abstract: The relationship between the macroeconomic variables and pressures for technological protectionism in the United States is analysed. A number of complaints under Section 337 of the Tariff Act 1930 are used as a measure of pressures for protectionism. The analysis, based on nonparametric tests and Poisson regression analysis, indicates a close relationship between the macroeconomic variables and the number of complaints under Section 337. The multilateral trade-weighted value of the US dollar adjusted by changes in consumer prices, import to export ratio, gross domestic products, consumer price indexes, unemployment rates, and inventory to sales ratios are some of the macroeconomic factors that affect Section 337 complaints. The complaints in each industry are found to be proportional to the size of shipments in the USA. The countrywise analysis of complaints indicates a strong relationship between the number of complaints and the proportion of patents a country has received in the USA.

Date: 1996
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DOI: 10.1080/758520880

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