Revisiting the Infant Industry Argument
Revisiting the Infant Industry Argument
复制标题
重新审视婴儿产业的争论
DOI:
10.1016/j.jdeveco.2006.10.001
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发表时间:
2007
期刊:
影响因子:
--
通讯作者:
Philip Sauré
中科院分区:
文献类型:
--
作者:
Philip Sauré
This paper identifies a flaw in the infant industry argument that previous literature has ignored. A simple model first replicates the infant industry logic but subsequently shows that, in the presence of a ‘traditional technology’ with poor growth potential, the infant-industry logic is likely to fail. Under protectionism domestic producers substitute advanced technologies with the low-growth alternative, thereby inhibiting learning and economic growth. Protectionism's adverse effect on development is magnified by complementarities among advanced input goods and, under adequate conditions, in a three-country setting.