Arbeitspapier
Costly revenue-raising and the case for favoring import-competing industries
A standard finding in the political economy of trade policy literature is that we should expect export-oriented industries to attract more assistance than import-competing industries. In reality, however, trade policy is heavily biased toward supporting import industries. This paper shows within a standard protection for sale framework, how the costliness of raising revenue via taxation may make export subsidies less desirable and import tariffs more desirable. The model is then estimated and its predictions are tested using U.S. tariff data. An empirical estimate of the costliness of revenue-raising is also obtained.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 1502
- Classification
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Wirtschaft
Trade and Labor Market Interactions
Trade Policy; International Trade Organizations
- Subject
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protection for sale
tariffs
trade protection
Außenhandelspolitik
Außenhandelsbeschränkung
Steuererhebung
Schätzung
USA
protection for sale
- Event
-
Geistige Schöpfung
- (who)
-
Matschke, Xenia
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2005
- Handle
- Last update
- 10.03.2025, 11:44 AM CET
Data provider
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
- Matschke, Xenia
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2005