Substitutability and Protectionism : Latin America's Trade Policy and Imports from China and India
This article examines the trade policy response of Latin American governments to the rapid growth of Chinese and Indian exports in world markets. To explain more protection in sectors where a large share of imports originates in China and India, the “protection for sale” model is extended to allow for region-specific degrees of substitutability between domestic and imported varieties of a good. The results suggest that more protection toward Chinese and Indian goods can be explained by the higher substitutability of Chinese and Indian goods with domestic varieties. The data support the model, which performs better than the original protection for sale framework in explaining Latin America's structure of protection.
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| Main Authors: | , , , |
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| Format: | Journal Article biblioteca |
| Language: | en_US |
| Published: |
World Bank
2011-03-30
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| Subjects: | comparative advantage, economic research, elasticity, elasticity of substitution, equilibrium, export growth, exports, fixed costs, imperfect substitutes, import quotas, open economy, political economy, protectionism, trade barriers, trade deficit, trade policies, trade policy, utility function, world trade organization, WTO, |
| Online Access: | http://hdl.handle.net/10986/13448 |
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