Trade Protection in India: Economics vs. Politics?
Working Paper 9616
Posted: 25 Apr 1997
Date Written: Revised, August 1996
Abstract
This paper investigates economic and political determinants of protection across the secondary (manufacturing) sector. Economic factors can be summarized by the infant industry argument and we expect industries which are relatively efficient compared to the rest-of-the-world to have low levels of protection. Moreover, the degree of protection should change as the relative efficiency of an industry changes over time. Political factors reflect pressure group politics: relatively inefficient industries may enjoy a great deal of protection because of political lobbying.
JEL Classification: F13, D78, O21
Suggested Citation: Suggested Citation