TY - JOUR
T1 - A rationale for infant-industry protection and gradual trade liberalization
AU - Naito, Takumi
PY - 2000/1/1
Y1 - 2000/1/1
N2 - 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.
AB - 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.
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U2 - 10.1111/1467-9361.00085
DO - 10.1111/1467-9361.00085
M3 - Article
AN - SCOPUS:0033944569
SN - 1363-6669
VL - 4
SP - 164
EP - 174
JO - Review of Development Economics
JF - Review of Development Economics
IS - 2
ER -