When is Trade Protection Good for Growth?

23 Pages Posted: 15 Dec 2005

See all articles by Jenny Minier

Jenny Minier

University of Kentucky - Department of Economics

Bulent Unel

Louisiana State University, Baton Rouge

Multiple version iconThere are 2 versions of this paper

Date Written: October 19, 2009

Abstract

The empirical relationship between trade protection and economic growth is surprisingly fragile, as shown in a number of other papers. After demonstrating this empirical sensitivity, we address one possible explanation for these findings: that the relationship is nonlinear. Following the endogenous growth literature, we test for the possibility that the relationship between trade barriers and growth is contingent on measures of comparative advantage. The findings suggest that these nonlinearities do in fact exist - in particular, the correlation between tariffs and growth is strongest and positive for capital-abundant countries - and are robust to the choice of control variables.

Keywords: Comparative advantage, economic growth, tariffs, total factor productivity

JEL Classification: F13, F43, O19, O24

Suggested Citation

Minier, Jenny and Unel, Bulent, When is Trade Protection Good for Growth? (October 19, 2009). Available at SSRN: https://ssrn.com/abstract=870049 or http://dx.doi.org/10.2139/ssrn.870049

Jenny Minier (Contact Author)

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

Bulent Unel

Louisiana State University, Baton Rouge ( email )

Department of Economics
2134 Patrick F. Taylor Hall
Baton Rouge, LA 70803
United States

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