Several arguments are advanced to justify a policy of protection. Haberler has classified these arguments into two groups: 1. Economic Arguments 2. Non-Economic Arguments. These arguments are analysed below: 1. Economic Arguments: The principal economic arguments in support of a protectionist commercial policy are as follows: (i) Infant Industry Argument: The most effective, accepted and sustained argument in support of [...]
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 [...]