حمایت رانتی و غیررانتی از تولید ملی

Mirjalili, Seyed Hossein

حمایت رانتی و غیررانتی از تولید ملی

Rent-Seeking vs. Non-Rent-Seeking Support for National Products

MPRA Paper from University Library of Munich, Germany

Abstract: The implementation of policies supporting national products has a history spanning several decades. Imposing customs tariffs and non-tariff barriers, obtaining licenses for the non-production of domestic goods, providing low-interest loans to producers, allocating foreign exchange at rates below the market rate, and granting subsidies to production inputs are among the methods employed to support national products. Contrary to common perception, policies such as import substitution have not led to savings in imports or foreign exchange. On the contrary, alongside industrial development, the demand for imports of capital and intermediate goods in Iran has increased. The type of support extended by the government to domestic production has generated rents, which in turn has diverted producers toward rent-seeking activities rather than enhancing productivity and upgrading production technologies—defeating the very purpose of support. Under current conditions, strengthening national products requires non-rent-seeking support. Successful countries in industrial development have achieved progress through non-rent-seeking policies. In order to be non-rent-seeking support for national products, It should be limited, conditional, selective, effective, and declining over time.

Keywords: Support; Rent; National Production; Import Substitution. (search for similar items in EconPapers)
JEL-codes: E6 O1 (search for similar items in EconPapers)
Date: 2020-01-01, Revised 2020-02-17
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Published in chapter of the book entitled: "Protection of National Products" 1.1(2020): pp. 9-30

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