We study infant industry protection using a dynamic model in which the industry's cost is initially higher than that of foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has transitioned to low cost is private information. We use a...

This paper uses history to explore the empirical content of two determinants of tariff policy that have a long pedigree: the Stolper-Samuelson corollary to the Heckscher-Ohlin theorem, and the infant-industry argument for protection. It reports a set of world tariff facts for the 150 years...

This paper examines the role of late nineteenth century U.S. tariffs in promoting infant industries by focusing on the much heralded example of the tinplate industry. After earlier failures, the tinplate industry became established and flourished after receiving protection in the McKinley tariff...

The authors predict that the Continental Customs Union (CCU) will injure some infant industries in smaller Member States and that, if not properly designed, the small States which have wholeheartedly embraced the African Continental Free Trade Area (AfCFTA) Agreement may actually hold little.The...

Countries have always looked for methods to improve the conditions of certain industries in order to increase their gross domestic production. Many have resorted to various trade protectionist policies in the form of quotas and tariffs to drastically reduce imports to develop the domestic...

In this article I examine the relevance of infant-industry promotion theory to South Sudan's economic revitalization efforts. As a newly formed state with jurisdiction over people with varied and often conflicting interests, the South Sudanese government will likely experience difficulty...

In an effort to provide an appropriate tribute to his wonderful career, this study develops a set of themes that have been at the centre of Dave Trubek's work for decades, including development economics and the roles of law in developing countries, the structure and regulation of legal...

This paper verifies the possibility of using Infant industry protection strategy to improve manufacturing competitiveness in developing countries. The main theoretical bases of this strategy are: its significant role in creating dynamic comparative advantages in manufacturing sector. This...

One rationale for the infant industry argument is that, by protecting domestic firms from foreign competition, this increases rents and investment in innovation and other growth enhancing measures. Using data on 4,750 firms across 13 developing countries, we examine whether protection via...

This extended book review of Creating a Learning Society by Joseph Stiglitz and Bruce Greenwald (2014) looks at the 700-page long scholarly work from a transition economy perspective. Using as a starting point Arrow's renowned concept of "learning by doing", the authors throw away the doctrines...

The article reviews literature on economic development, critiques neoliberal economic theories, and advances the theory of infant industry promotion as an alternative model for development in Africa. The essay argues that for developing countries to catch up to developed countries requires...

The development of Venture Capital in Israel during 1993-2000 is an example of policy-led industry emergence. The Israeli targeted policy adapted to trigger Venture Capital emergence is an example of successful infant industry policy implemented at the prime of the Globalization process of...

This paper explores the origins of Andorra’s financial cluster. It shows that the free movement of currency, the protection of infant industry, and geographical concentration lie at the foundation of the cluster’s competitive advantage. Drawing on a new set of data, the paper also provides...

I argue that the 19th century Canadian cotton textile industry was an extremely successful infant industry. Judging the industry’s performance by seven widely-employed measures of success – growth in output, contemporary opinion, size, the use of the most modern machinery, exports, and...

This paper investigates the optimal dynamic paths of trade protection imposed on infant industries during the process of joining a free trade agreement. The framework is based on the dynamic learning-by-doing model developed in Melitz (2005), where industries are experiencing dynamic...

A perennial case for industrial policy is based on the protection of young or emerging industries. Despite a natural association with concepts of life cycles, industrial policy has not been analyzed in the context of an industry life-cycle model. In particular, an important life-cycle...

In industries with imperfect consumer information, the lack of a reputation puts latecomers at a competitive disadvantage vis-a-vis established firms. We consider whether the existence of such informational barriers to entry provides a valid reason for temporarily protecting infant producers of...

This paper analyzes the effect of policies on the Japanese automobile industry before 1945. Japan achieved import substitution of trucks before World War II. It also exported small size passenger cars then. In the process of the development of automobile industry, the government policies seemed...

Economics

This paper uses history to explore the empirical content of two determinants of tariff policy that have a long pedigree: the Stolper-Samuelson corollary to the Heckscher-Ohlin theorem, and the infant-industry argument for protection. It reports a set of world tariff facts for the 150 years...

This paper analyzes time-consistent subsidies in industries with strong learning effects and frequent entry and exit. Structural dynamics create opportunities for strategic behavior: by influencing government policies, infant firms can reduce their tax burden and weaken future competitors. Two...

This paper identifies a flaw in the infant industry argument that previous literature has ignored. A simple model first replicates the infant industry logic but subsequently shows that, in the presence of a 'traditional technology' with poor growth potential, the infant-industry logic is likely...