Recent research has demonstrated the possibility of welfare-enhancing industrial policy. This paper analyzes the impact of industrial policy on Japan's trade pattern and explores the possibility that it has been welfare-enhancing. Econometric results indicate that industrial policies have had an...

As nontariff forms of trade protection proliferate it has become more difficult to analyze the impact of trade policy on trade flows. In a number of well-known papers researchers have attempted to infer the impact of trade policy indirectly by ascribing to trade policy the differences between...