Mill and Infant Industry
Starting with Adam Smith’s criticism against mercantilism, economists of the classical school generally advocated the free trade and were critical to the protection of domestic industries. J. S. Mill admited, however, the protection of the so-called infant industry, though he imposes a condition which an industry must satisfy to be protected. Then, it was Bastable who followed Mill to add another necessary condition for protection. This Mill-Bastable infant industry dogma was discussed critically by some modern economists from the point of view of the dynamic theory of the gains from trade.
KeywordsFree Trade Marginal Utility Demand Curve Cost Curve Supply Curve
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