Substitutability and Protectionism : Latin America's Trade Policy and Imports from China and India
The authors examine the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is imported from these countries, they extend the "...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/04/7503699/substitutability-protectionism-latin-americas-trade-policy-imports-china-india http://hdl.handle.net/10986/7014 |
| Summary: | The authors examine the trade policy
response of Latin American governments to the rapid growth
of China and India in world markets. To explain higher
protection in sectors where a large share is imported from
these countries, they extend the "protection for
sale" model to allow for different degrees of
substitutability between domestically produced and imported
varieties. The extension suggests that higher levels of
protection toward Chinese goods can be explained by high
substitutability between domestically produced goods and
Chinese goods, whereas lower levels of protection toward
goods imported from India can be explained by low
substitutability with domestically produced goods. The data
support the extension to the "protection for sale"
model, which performs better than the original specification
in terms of explaining Latin America's structure of protection. |
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