DP7053 The Structure of Protection and Growth in the Late 19th Century

Author(s): Sibylle H. Lehmann, Kevin Hjortshøj O'Rourke
Publication Date: November 2008
Keyword(s): growth, history, tariffs
JEL(s): F13, F43, N10, N70, O49
Programme Areas: International Macroeconomics, International Trade and Regional Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7053

Many papers have explored the relationship between average tariff rates and economic growth, when theory suggests that the structure of protection is what should matter. We therefore explore the relationship between economic growth and agricultural tariffs, industrial tariffs, and revenue tariffs, for a sample of relatively well-developed countries between 1875 and 1913. Industrial tariffs were positively correlated with growth. Agricultural tariffs were negatively correlated with growth, although the relationship was often statistically insignificant at conventional levels. There was no relationship between revenue tariffs and growth.