DETERMINANTS OF PROTECTION IN THAI MANUFACTURING

JUTHAHIP JONGWANICH · Archanun Kohpaiboon

15 citations0/0 files storedEconomic Papers A journal of applied economics and policy

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Global trade and economics International Business and FDI Asian Industrial and Economic Development

Abstract

This paper examines determinants of effective rates of protection (ERP) and nominal rates of protection (NRP) in Thai manufacturing. Our results indicate political bargains in Thailand are struck over ERP rather than NRP. Moreover, protection tends to be granted to industries that have a high level of industry concentration and are experiencing increased import competition. The relatively open foreign investment policy regime in Thailand means that policymakers are more responsive to requests made by foreign investors, including requests for tariff cuts. The decision to grant protection to Thai industries is justified on the basis of the ability of industries to generate employment and backward linkage to the rest of the economy.

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References

1965The Logic of Collective Action 1983A Theory of Competition Among Pressure Groups for Political Influence 1992Protection For Sale 1993Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy 2000Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection 1975Trade policy and economic welfare 1990Black Hole Tariffs and Endogenous Policy Theory: Political Economy in General Equilibrium.1966The Structure of a Tariff System and the Effective Protective Rate

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