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Trade Policy and Economic Welfare$
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W. Max. Corden

Print publication date: 1997

Print ISBN-13: 9780198775348

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198775342.001.0001

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The Infant Industry Argument

The Infant Industry Argument

Chapter:
(p.139) 8 The Infant Industry Argument
Source:
Trade Policy and Economic Welfare
Author(s):

W. Max Corden (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198775342.003.0008

Presents a comprehensive exposition of various possible bases for an infant industry argument for protection. It distinguishes dynamic internal economies and dynamic external economies and, in the latter case, reciprocal external economies, and externalities resulting from labour training, knowledge diffusion, and atmosphere creation. It shows that static economies of scale have a doubtful role in justifying an infant industry argument.

Keywords:   economies of scale, external economies, externalities, infant industry, internal economies, protection

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