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Wiley InterScience | |||||||||
  Economics & PoliticsVolume 16 Issue 2, Pages 147 - 162 Published Online: 17 Jun 2004 © 2010 Blackwell Publishing Ltd
Abstract | References | Full Text: PDF (Size: 136K) | Related Articles | Citation Tracking  Protection versus Promotion: An Empirical Investigation Copyright © Blackwell Publishing Ltd 2004 ABSTRACTUsing Turkish industry-level data from 1983 to 1990, we find that politically organized industries receive both higher protection and promotion than unorganized ones. Tariff rates are decreasing (increasing) in the import-penetration ratio and the absolute value of the import-demandelasticity for organized (unorganized) industries. Subsidy rates are decreasing (increasing) in the output-supply elasticity for organized (unorganized) industries. The results are consistent with the predictions of the Grossman–Helpman model and its extension in this paper. The mix of protection and promotion is inversely related to the ratio of their respective marginal deadweight cost measures. | 
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