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Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model

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  • CHRISTOPHER CLAGUE
  • DAVID GREENAWAY

Abstract

The concepts of ‘true protection’ and the ‘incidence of protection’ are potentially very useful for the evaluation of commercial policy. These concepts have been developed in the context of a model in which the production functions are implicit. The present paper develops the analysis of true protection in models in which the factors of production are explicitly identified. The paper finds that the Heckscher‐Ohlin model may not be an appropriate vehicle for the analysis of the effects of tariffs, while the specific‐factors model facilitates a fuller evaluation of, and permits additional insights into, the incidence of protection.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:208:p:36-43
    DOI: 10.1111/j.1475-4932.1994.tb01823.x
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    References listed on IDEAS

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    1. Greenaway, David, 1989. "Commercial Policy and Policy Conflict: An Evaluation of the Incidence of Protection in a Non-industrialized Economy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 57(2), pages 125-141, June.
    2. 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.
    3. Edwards, Sebastian & van Wijnbergen, Sweder, 1987. "Tariffs, The Real Exchange Rate and the Terms of Trade: On Two Popular Propositions in International Economics," Oxford Economic Papers, Oxford University Press, vol. 39(3), pages 458-464, September.
    4. repec:bla:ecorec:v:62:y:1986:i:179:p:490-96 is not listed on IDEAS
    5. L.A. Sjaastad & K.W. Clements, 1981. "The Incidence of Protection: Theory and measurement," Economics Discussion / Working Papers 81-04, The University of Western Australia, Department of Economics.
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    Cited by:

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    4. Chris Milner, 1995. "Relative Incentives and Trade Strategies: Typologies and Possibilities," The Economic Record, The Economic Society of Australia, vol. 71(3), pages 230-239, September.
    5. repec:kap:iaecre:v:11:y:2005:i:4:p:417-432 is not listed on IDEAS
    6. Maria-Jesus Asensio & Eva Pardos, 2001. "Trade policy and Spanish specialization, 1978-93," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(2), pages 163-187.

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