Arbeitspapier
Protectionism and Economic Growth: Causal Evidence from the First Era of Globalization
We investigate how protectionist policies influence economic growth. Our empirical strategy exploits an extraordinary tax scandal that gave rise to an unexpected change of government in Sweden. A free-trade majority in parliament was overturned by a protectionist majority in 1887. We employ the synthetic control method to select control countries against which economic growth in Sweden can be compared. We do not find evidence suggesting that protectionist policies influenced economic growth and examine channels why. Tariffs increased government revenue. However, the results do not suggest that the protectionist government stimulated the economy in the short-run by increasing government expenditure.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 8759
- Classification
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Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Trade: General
Trade Policy; International Trade Organizations
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
Macroeconomic Analyses of Economic Development
- Subject
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protectionism
economic growth
first era of globalization
synthetic control method
causal inference
- Event
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Geistige Schöpfung
- (who)
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Potrafke, Niklas
Ruthardt, Fabian
Wüthrich, Kaspar
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and Ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2020
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Potrafke, Niklas
- Ruthardt, Fabian
- Wüthrich, Kaspar
- Center for Economic Studies and Ifo Institute (CESifo)
Time of origin
- 2020
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