Hostname: page-component-84b7d79bbc-2l2gl Total loading time: 0 Render date: 2024-07-26T17:32:44.419Z Has data issue: false hasContentIssue false

Tariffs and Trade Fluctuations: Does Protectionism Matter as Much as We Think?

Published online by Cambridge University Press:  18 August 2003

Get access

Abstract

Despite the widespread assumption that tariffs reduce trade volume in the short term, it is conceivable that long-term expansion and contractions in trade actually drive tariff levels. A Granger causality analysis performed on British, U.S., French, German, Japanese, and a systematic aggregate data on GDP-tariff levels encompassing the 1854–1990 period finds mixed support for both the short- and long-term interpretations. In general, the antecedence of trade on protectionism predominates over the antecedence of protectionism on trade. One implication is that the long-term context should not be ignored in analyzing short-term dynamics.

Type
Research Note
Copyright
Copyright © The IO Foundation 1998

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)