TESTING PROTECTION FOR SALE IN THE FOOD INDUSTRIES

This paper tests the Grossman-Helpman Protection for Sale model using panel data from U.S. food processing industries with endogenous protection, import penetration, and political campaign. The results support the key predictions of the model: organized industries are granted higher protection that decreases with import penetration and the price elasticity of imports. Furthermore, the presence of import quotas raises the level of protection substantially. The estimated weight on aggregate welfare is strikingly similar those found by Goldberg and Maggi (1999) and Gawande and Bandopadhyay (2000), implying that protection is not for sale in these industries.


Subject(s):
Issue Date:
2002
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/19682
Total Pages:
20
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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