Quotation Arthi, Vellore, Lampe, Markus, Nair, Ashwin R., O´Rourke, Kevin Hjortshøj. 2020. The Impact of Interwar Protection: Evidence from India. NBER Working Paper No. 27178.




Research on the quantitative impact of interwar protection on trade flows remains scarce, and much of it has concluded that the impact was surprisingly small. In this paper we ask: Did Indian interwar protection hurt UK manufacturers, by raising tariffs on manufactured imports? Or did it favour UK interests, by discriminating against “foreign” (i.e. non-British) producers? We answer this question by quantifying the impact of trade policy on the value and composition of Indian imports, using novel disaggregated data on both trade policies and imports for 114 commodity categories coming from 42 countries. Indian trade elasticities were generally larger than those in the United Kingdom at the same time. We find that even though Indian protection lowered total imports, it substantially boosted imports from the UK. Trade policy had a big impact on trade flows.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title The Impact of Interwar Protection: Evidence from India
Title of whole publication NBER Working Paper No. 27178
Year 2020
URL https://www.nber.org/papers/w27178
JEL F13, F14, N75


Lampe, Markus (Details)
Arthi, Vellore (University of California at Irvine, United States/USA)
Nair, Ashwin R. (-, India)
O´Rourke, Kevin Hjortshøj (New York University Abu Dhabi, United Arab Emirates)
Institute for Economic and Social History IN (Details)
Research Institute for Spatial and Real Estate Economics FI (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
5340 Economic history (Details)
6521 Economic history (Details)
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