The Political Economy of Protection: Theory and the Chilean Experience

By Daniel Lederman | Go to book overview

NOTES

Introduction

1. Rajapatirana (1996) is an exception. This contribution explores only the empirical correlation between trade policies in Latin America and the current account deficit.

2. The political science literature has also focused on the relative power position of states within the international system. This view has been labeled the “system-centered” approach. See Ikenberry et al. (1988) for a review of this and other approaches.

3. See Rodrik (1995), Rosendorff (1996), and Mitra (2000) for recent contributions to this literature.


Chapter 1

1. The rule used for classifying each article or book was to first consider the background of the author. When the authors belong to both disciplines, then the editorial board of the journal was considered. There is one case of an interdisciplinary book (Odell and Willet 1990), but only one of its singleauthor chapters was selected for the present review (Mares 1990).

2. In Lavergne (1983, 37) “the decision-making unit is the ‘governement.’“

3. Rodrik (1994) develops a related concept, which he labels the “political cost-benefit ratio.” This article is discussed further below.

4. Baldwin (1989b) uses this distinction (the “economic self-interest” versus the “social concerns” approach) to organize his literature review.

5. “Consumer surplus” refers to the welfare of consumers. It is usually measured as the area under the demand curve.

6. On the theory of domestic divergences, see also the generalized theory of distortions by Bhagwati (1971). Srinivasan (1996, 6–10) includes a brief discussion about the relationship between “endogenous trade policy” and the generalized theory of distortions.

7. Corden (1997, 282) uses the word “perceptions” in this sense.

8. Corden (1974, 45–48) explains that trade taxes can be preferable from a welfare viewpoint when domestic taxes have collection costs.

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