Contrary to recent contentions, effective protection theory is valid in a general equilibrium framework, and efficiency proportions of the current definitions of effective tariff are unbiased. The analysis reestablishes the traditional conclusion obtained in models incorporating final goods only, according to which productive efficiency requires the equality of all tariffs and subsidies for the case when intermediate goods are introduced. Overall...
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INFORMATION
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1970/01/31
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Document de travail des services de la Banque mondiale
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SWP54
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1
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1
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2010/07/12
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Disclosed
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Tariffs, intermediate goods, and domestic protection : comment
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productive efficiency
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