Abstract
Trade protection in a declining industry can cause damages beyond those revealed in the usual trade diagram analysis. Using data on the US steel firms, we show that trade protection in that industry rewards poor performance, reduces incentives to innovate, and frustrates the normal Schumpeterian process of creative destruction.
Original language | English (US) |
---|---|
Pages (from-to) | 410-421 |
Number of pages | 12 |
Journal | Economic Journal |
Volume | 106 |
Issue number | 435 |
DOIs | |
State | Published - Mar 1996 |