A rationale for infant-industry protection and gradual trade liberalization

Takumi Naito*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


A two-final-good, one-primary-factor, small-open endogenous growth model is constructed based on R and D. The model yields two steady states with different growth rates as potential equilibria. Depending on history and the external environment, the economy may fall into the poverty trap in free trade. However, a temporary trade policy can release the economy from the poverty trap. Moreover, the optimal trade policy is gradual trade liberalization with the rate of protection kept to a minimum.

Original languageEnglish
Pages (from-to)164-174
Number of pages11
JournalReview of Development Economics
Issue number2
Publication statusPublished - 2000 Jan 1
Externally publishedYes

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development


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