When is Trade Protection Good for Growth?
10 Pages Posted: 30 Nov 2012
Date Written: January 2013
The empirical relationship between trade protection and economic growth is surprisingly fragile, as shown in a number of other papers. We address one possible explanation for these findings: that the relationship is contingent on the pattern of comparative advantage, following the endogenous growth literature. Our findings suggest that such contingencies do in fact exist — in particular, the correlation between tariffs and growth is strong and positive for skill‐abundant countries — and are robust to the choice of control variables.
JEL Classification: F13, F43, O19, O24
Suggested Citation: Suggested Citation