The Possibility of Income Losses From Increased Efficiency or Factor Accumulation in the Presence of Tariffs
Johnson, H.G.
The Possibility of Income Losses From Increased Efficiency or Factor Accumulation in the Presence of Tariffs - USA : Wiley-Blackwell, 1967.
The adoption of more efficient technology and the accumulation of factors of production are generally assumed to increase the real income available to an economy. But when a country is following a protective policy improved efficiency in the protected industry or accumulation of the factor used intensively in that industry will actually reduce the country's real income, over a range of change set by the degree of protection. This possibility of income-reducing growth is relevant to the fact that countries industrializing by means of protectionist and import-substitution policies are frequently dissatisfied with the results. This note presents a formal demonstration of the possibility, in terms of the standard Heckscher-Ohlin model of international trade.
Text in English
0013-0133 1468-0297 (Online)
Economics
International trade
Trade policies
Technology
The Possibility of Income Losses From Increased Efficiency or Factor Accumulation in the Presence of Tariffs - USA : Wiley-Blackwell, 1967.
The adoption of more efficient technology and the accumulation of factors of production are generally assumed to increase the real income available to an economy. But when a country is following a protective policy improved efficiency in the protected industry or accumulation of the factor used intensively in that industry will actually reduce the country's real income, over a range of change set by the degree of protection. This possibility of income-reducing growth is relevant to the fact that countries industrializing by means of protectionist and import-substitution policies are frequently dissatisfied with the results. This note presents a formal demonstration of the possibility, in terms of the standard Heckscher-Ohlin model of international trade.
Text in English
0013-0133 1468-0297 (Online)
Economics
International trade
Trade policies
Technology