RePEc: Research Papers in Economics · 2000 · 55 citations · 6 references
Social SciencesDevelopment StudiesEconomicsDevelopment EconomicsEconomic DevelopmentInternational TradeComparative AdvantageImport RegulationIndustrial PolicyMarket AccessTrade LiberalizationAdjustment Assistance PolicyDomestic Market ProtectionEconomic Adjustment AssistanceIndustrial Adjustment To Import CompetitionInternational Trade EconomicsMarket Access RightsTrade Liberalization Under Political Economy Constraints
Developing countries’ growth can provoke protectionist backlash from developed countries, undermining benefits and contributing to global resistance to trade liberalization. The study examines how development in developing countries triggers protectionist backlash from developed countries and proposes policy responses. The authors recommend expanding and improving trade adjustment assistance programs to mitigate the backlash. Examples of protection—textiles, apparel, and steel—illustrate the backlash mechanism.
This paper argues that successful development by developing countries causes adverse consequences for some factor owners in developed countries. These in turn seek protection from imports and that protection undermines the benefits to the developing countries of their own growth. Several of the main examples of protection in the world today can be interpreted as arising from this mechanism, including protection of textiles, apparel, and steel. More broadly, current resistance to globalization may be due in part to this phenomenon. The paper concludes with a brief discussion of how policies and institutions should respond to this, including increased use and improvement of programs of trade adjustment assistance.
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Factor Endowment and Relative Commodity Prices
T. M. Rybczynski · Economica · 1955 · 784 citations
Trade Policy and Economic Welfare.
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