Is Protection for Sale in U.S. Food Industries?

Rigoberto Lopez and Ibrahima Hathie

No 69, Food Marketing Policy Center Research Reports from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy

Abstract: This article tests the Grossman-Helpman Protection for Sale model using panel data from U.S. food processing industries with endogenous protection, imports, and political organization of industries. The results support the key predictions of the model: organized industries are granted higher protection that decreases with import penetration and the price elasticity of imports, but in unorganized industries protection increases with import penetration. In spite of substantial differences in data sets and empirical procedures, the estimated weight on aggregate welfare is strikingly similar those found by Goldberg and Maggi (1999) and Gawande and Bandopadhyay (2000), implying that protection is not for sale in these industries. Furthermore, the presence of import quotas raises the level of protection substantially.

Keywords: trade protection; tariffs; lobbying; political economy; food manufacturing; Agribusiness; Agricultural and Food Policy; International Relations/Trade; Political Economy (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://fmpc.uconn.edu/publications/rr/rr69.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to fmpc.uconn.edu:80 (No such host is known. )

Related works:
Working Paper: Is Protection for Sale in U.S. Food Industries? (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zwi:fpcrep:069

Access Statistics for this paper

More papers in Food Marketing Policy Center Research Reports from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy Contact information at EDIRC.
Bibliographic data for series maintained by ().