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Crucial Materials? How Export Restrictions Upstream Boost Manufacturing Exports Downstream

Eva Wichmann

No 181, FIW Working Paper series from FIW

Abstract: This paper shows both theoretically and empirically how raw material rich countries use export restrictions upstream to give manufacturing sectors downstream a competitive advantage. For young and relatively small industries this can be seen as a type of infant industry protection that takes advantage of the global value chain. Estimating a fixed effect model, I provide evidence that export restrictions on industrial raw materials upstream help promote manufacturing exports downstream.

Keywords: Export Restrictions; International Trade; Competitive Advantage; Resource Rich; Manufacturing; Metals; Minerals (search for similar items in EconPapers)
JEL-codes: F12 F14 L25 L61 L71 Q3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2017-12
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