Reconsidering the empirical evidence on the Grossman‐Helpman model of endogenous protection

Josh Ederington and Jenny Minier

Canadian Journal of Economics/Revue canadienne d'économique, 2008, vol. 41, issue 2, 501-516

Abstract: Abstract. The emergence of the Grossman and Helpman (1994) model of endogenous protection as the preëminent model in the political economy of trade literature has been significantly advanced by the finding that its predictions about the cross‐industry pattern of protection are broadly consistent with the data. However, in their empirical implementation of the Grossman‐Helpman model, researchers have assumed the presence of multiple policy instruments and extraneous political factors. We argue that incorporating these assumptions into the theory significantly changes its predictions about the cross‐industry pattern of protection. JEL classification: F1 L'émergence du modèle de protection endogène de Grossman‐Helpman en tant que modèle le plus important dans la littérature sur l'économie politique du commerce international a été confirmée de manière significative quand on a découvert que ses prédictions quant au pattern de protection à travers les industries se trouvaient généralement confirmées par les données. Cependant, dans leur vérification empirique du modèle de Grossman‐Helpman, les chercheurs ont postulé la présence de multiples instruments de politique publique et de certains facteurs politiques. On suggère que l'ajout de ces postulats change de manière significative les prédictions du modèle quant au pattern de protection dans les divers secteurs.

Date: 2008
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Citations: View citations in EconPapers (10)

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https://doi.org/10.1111/j.1540-5982.2008.00472.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:41:y:2008:i:2:p:501-516

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