Do Tariffs Protect Specific Factors?
It is shown that a tariff can lower payment to a productive factor used only in (specific to) the protected industry in a simple production model. This may occur anytime the protected sector shares more than one common factor with the rest of the economy, as seems most likely. Intuition based on the well-known specific factors model, where sectors share a single common factor, should be modified. Whether specific factors effectively receive protection from tariffs becomes an empirical issue.
Year of publication: |
1989
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Authors: | Thompson, Henry |
Published in: |
Canadian Journal of Economics. - Canadian Economics Association - CEA. - Vol. 22.1989, 2, p. 406-12
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Publisher: |
Canadian Economics Association - CEA |
Saved in:
Online Resource
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