Protectionism and Economic Growth: Causal Evidence from the First Era of Globalization
Niklas Potrafke (),
Kaspar Wüthrich () and
Fabian Ruthardt ()
Authors registered in the RePEc Author Service: Fabian Ruthardt ()
No 8759, CESifo Working Paper Series from CESifo
We investigate how protectionist policies influence short-run economic growth. Our empirical strategy exploits an extraordinary tax scandal that gave rise to an unexpected change of government in Sweden. A free-trade majority in parliament was overturned by a protectionist majority in 1887. The protectionist government increased tariffs. We employ the synthetic control method to select control countries against which economic growth in Sweden can be compared. We do not find evidence suggesting that protectionist policies influenced economic growth and examine channels why. The new tariff laws increased government revenue. However, the results do not suggest that the protectionist government stimulated the economy by increasing government expenditure.
Keywords: protectionism; economic growth; first era of globalization; synthetic control method; causal inference (search for similar items in EconPapers)
JEL-codes: C33 D72 F10 F13 N10 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gro, nep-his, nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Protectionism and economic growth: Causal evidence from the first era of globalization (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8759
Access Statistics for this paper
More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().