Working Paper: NBER ID: w14493
Authors: Sibylle H. Lehmann; Kevin H. O'Rourke
Abstract: Many papers have explored the relationship between average tariff rates and economic growth, when theory suggests that the structure of protection is what should matter. We therefore explore the relationship between economic growth and agricultural tariffs, industrial tariffs, and revenue tariffs, for a sample of relatively well-developed countries between 1875 and 1913. Industrial tariffs were positively correlated with growth. Agricultural tariffs were negatively correlated with growth, although the relationship was often statistically insignificant at conventional levels. There was no relationship between revenue tariffs and growth.
Keywords: tariffs; economic growth; 19th century; trade policy
JEL Codes: F13; F43; N10; N70; O49
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Industrial Tariffs (L59) | Economic Growth (O49) |
| Agricultural Tariffs (Q17) | Economic Growth (O49) |
| Revenue Tariffs (H20) | Economic Growth (O49) |