In this article we will discuss about:- 1. Concept of Effective Rate of Protection 2. Assumptions of Effective Rate of Protection 3. Importance 4. Limitations. Concept of Effective Rate of Protection: Until the early 1960's, the official rate of tariff was intended to discourage the import of final product and to promote the domestic production in the protected industry. The [...]
In this article we will discuss about:- 1. Meaning of Political Market 2. Concept of Median Voter 3. Lobbying 4. The Choice of Protective Instruments 5. Anti-Dumping Legislation 6. Rent-Seeking 7. Empirical Work. Meaning of Political Market: In the latter half of 1950's, the political scientists and economists like Becker. Buchanan, Tullock, Downs, Olson and Stigler developed the model called [...]
In the LDCs, the policy of protection is strongly supported because it can lead to accelerated growth. The main arguments in support of protecting the home industries in the LDCs are as follows: (i) Growth of Infant Industries: As the LDCs initiate the programme of industrial development, it is necessary that newly started industries or the infant industries are protected [...]