The Economic Case Against Selected Protection
The economic case against selected protectionism does not argue that the
arguments for protection are conceptually or theoretically invalid. Indeed,
there is general acceptance among economists that free trade is probably
not the best policy in terms of maximizing economic efficiency in the real
world. Instead the counter-arguments to selected protectionism are based
on four broad themes, 1) potential reactions by others in response to one
country's protection, 2) the likely presence of superior policies to raise
economic efficiency relative to a trade policy, 3) information deficiencies
which can inhibit the implementation of appropriate policies, and 4) problems
associated with lobbying within democratic political systems. We shall consider
each of these issues in turn.
- The Potential for Retaliation
- The Theory of the 2nd-Best
- Information Deficiencies
- Political Economy Issues
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International Trade Theory and Policy - Chapter 120-5: Last
Updated on 7/19/97
