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The political economy of protection in developing countries : a case study of Colombia and South Korea (English)

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  • The political economy of protection in developing countries : a case study of Colombia and South Korea (English)
  • ALIKHANI, I.; HAVRYLYSHYN, O.; EPD
  • World Bank (WB)


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Title The political economy of protection in developing countries : a case study of Colombia and South Korea (English)
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Material Type Reports
Author(English)

ALIKHANI, I.; HAVRYLYSHYN, O.; EPD

Publisher

World Bank (WB)

Date 1982
Language English
File Type Link
Subject Economy < Macroeconomics

Abstract

This paper aims to test a model of the political economy of protection in two developing countries. The paper undertakes a preliminary analysis of the determinants of protection, using a national policy model, focusing initially on two countries, South Korea and Colombia. The model expands on earlier versions used to analyze industrial countries to recognize that DCs may also protect industries due to infant industry reasons. The year considered in 1969 for all manufacturing industries for which data is available at four-digit ISIC. The paper provides a methodology to examine the determinants of trade and industrial incentives in DCs. The model proposed for developing countries focuses the protection and nuturing of new industries, either for import-substitution or for export-promotion. The paper closes with a discussion of the empirical results.