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- Title
EFFECTIVE RATES OF PROTECTION WHEN DOMESTIC AND FOREIGN GOODS ARE IMPREFECT SUBSTITUTES: THE CASE OF THAILAND.
- Authors
Devarajan, Shantayanan; Sussangkarn, Chalongphob
- Abstract
Abstract--Noting that standard calculations of effective rates of protection (ERP) assume that domestic and foreign goods are perfectly substitutable, this paper relaxes that assumption. Using a 54-sector, general equilibrium model of Thailand, we compute ERPs when the imported and domestically-produced good in each sector are assumed to be imperfect substitutes and compare them with the ERPs as derived using the standard approach. Our results show that the general-equilibrium calculation differs from the standard one not just in the ranking and magnitude of the ERP but sometimes even in the sign.
- Subjects
THAILAND; COMMERCIAL products; PRODUCTION (Economic theory); ECONOMIC equilibrium; GROSS domestic product; SUBSTITUTION (Economics); IMPORTS; INTERNATIONAL trade; EQUILIBRIUM
- Publication
Review of Economics & Statistics, 1992, Vol 74, Issue 4, p701
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/2109384