Arbeitspapier

The infant industry argument: Tariffs, NTMs and innovation

One rationale for the infant industry argument is that, by protecting domestic firms from foreign competition, this increases rents and investment in innovation and other growth enhancing measures. Using data on 4,750 firms across 13 developing countries, we examine whether protection via tariffs or non-tariff measures (SPS and TBT specifically) increase innovation in either products or processes. We find no such evidence; instead we find a small negative impact of protection, particularly tariffs and TBTs, on innovation.

Language
Englisch

Bibliographic citation
Series: UCD Centre for Economic Research Working Paper Series ; No. WP17/03

Classification
Wirtschaft
Trade Policy; International Trade Organizations
National Government Expenditures and Related Policies: Procurement
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Subject
Non-Tariff Measures
Technical Barriers to Trade
Innovation
Infant Industry

Event
Geistige Schöpfung
(who)
Bagayev, Igor
Davies, Ronald B.
Event
Veröffentlichung
(who)
University College Dublin, UCD School of Economics
(where)
Dublin
(when)
2017

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bagayev, Igor
  • Davies, Ronald B.
  • University College Dublin, UCD School of Economics

Time of origin

  • 2017

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