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Who Pays for Protection in Australia?

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  • KWANG‐HO CHOI
  • TRACEY A. CUMMING

Abstract

A simple model is used to measure the transfer effects resulting from protection in Australia. The model is not concerned with the deadweight losses associated with protection. The concept of ‘true’ protection is employed to construct a transfer matrix which shows how income is transferred between sectors. The results indicate that exporters are the sole losers from protection. The cost to Australian exporters is about 1.5 per cent of GDP.

Suggested Citation

  • Kwang‐Ho Choi & Tracey A. Cumming, 1986. "Who Pays for Protection in Australia?," The Economic Record, The Economic Society of Australia, vol. 62(4), pages 490-496, December.
    • Handle: RePEc:bla:ecorec:v:62:y:1986:i:4:p:490-496
    DOI: 10.1111/j.1475-4932.1986.tb00913.x
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    References listed on IDEAS

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    1. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
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    Cited by:

    1. Malcolm R. Fisher, 1988. "The Case For A Less-Regulated Labour Market," Australian Journal of Management, Australian School of Business, vol. 13(2), pages 141-160, December.
    2. Christopher Clague & David Greenaway, 1994. "Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 36-43, March.
    3. Clements, Kenneth W. & Fry, Renée, 2008. "Commodity currencies and currency commodities," Resources Policy, Elsevier, vol. 33(2), pages 55-73, June.
    4. M.A. Marais, 1992. "The Cost of Protection to Western Australia," Economics Discussion / Working Papers 92-27, The University of Western Australia, Department of Economics.
    5. Hazledine, Tim, 1989. "Industrial Organisation Foundations Of Trade Policy Modelling," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-19, April.
    6. K.W. Clements, 1986. "The Computational Economics Projects at UWA: A review," Economics Discussion / Working Papers 86-08, The University of Western Australia, Department of Economics.
    7. Larry A. Sjaastad, 1991. "Debt, Deficits, And Foreign Trade," Economic Papers, The Economic Society of Australia, vol. 10(3), pages 64-75, September.
    8. Alfred Wong & Ray Brooks, 1989. "New Zealand's true rate of protection," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 52, march.
    9. Njinkeu, Dominique, 1996. "Evaluation of the incentive structure: A survey and application to Cameroon," World Development, Elsevier, vol. 24(3), pages 557-568, March.

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