Economics and the politics of protection : some case studies of industries
Cable, Vincent
This report is part of an inquiry undertaken by the World Bank in conjunction with scholars from 12 industrial countries into the penetration of the markets of industrial countries by exports of manufactures from developing countries. The project sought to establish the shares of industrial country markets held by the developing countries, changes in such shares in the 1970s, and why they vary among industry groups and countries. The aim is to assist developing and industrial countries to improve their policies through a better understanding of trade patterns and protectionist pressures. To a great extent, protectionist behavior is industry-specific, with several factors relevant in determining an industry's attitude toward protection. Among them are the intensity and nature of the competition it faces, its adjustment options and capacity to adjust, and its success in lobbying the government for protection. This paper analyzes these factors for four different industries in Great Britain: footwear, knitwear, cutlery and consumer electronics. Each has faced substantial import competition from developing countries and has received varying degrees of protection that in all cases have been higher than the U.K. average for manufacturing. The paper also looks at the factors that may determine whether the government adopts a protectionist policy, with specific attention to the four industries.
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