The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Infant-Industry Protection

  • Douglas A. Irwin
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2617

Abstract

The infant industry argument for protection holds that new industries in developing countries should be promoted through trade or industrial policy measures to allow them to mature and compete successfully against established foreign rivals. This article assesses the theory and evidence behind this qualification to the case for free trade.

Keywords

Brazil Capital market failure Cost–benefit analysis Counterfactual simulation Denmark Dynamic learning effects Growth and learning-by-doing Hamilton, A. Imperfect information Infant industry protection Informational barriers to entry Learning-by-doing Learning-by-doing spillovers List, F. Mill, J. S. Research and development Smith, A. Trade policy, political economy of Transfer of technology Underproduction 

JEL Classifications

F1 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Douglas A. Irwin
    • 1
  1. 1.