Is Tariff Reduction a Viable Strategy for Economic Growth in the Periphery? An Examination of Tariff Interaction Effects in 69 Less Developed Countries

Authors

  • Roy Kwon University of La Verne

DOI:

https://doi.org/10.5195/jwsr.2013.506

Keywords:

tariffs, trade policy, economic growth, less developed countries, peripheral development, political economy, world-economy, world-system theory

Abstract

Conventional economic wisdom maintains that the reduction of domestic import restrictions assists in the development of less developed countries. But far from being a settled debate, the empirical research on tariffs and economic growth is much more controversial than is commonly recognized. In fact, so contentious and unsettled is this mode of inquiry that the research of some scholars directly contradicts the findings of others. In light of this difficulty encountered by researchers, the current study argues that the tariff~growth link is best analyzed by exploring the conditional effect of import restrictions on the development of low-income countries. Utilizing a panel dataset with information for 69 less developed countries, the results of this investigation show that tariff interactions with domestic investment and labor participation, respectively, augments the growth-generating impact of these variables. In addition, the constituent terms reveal that domestic investment and labor-force participation produces robust negative associations with economic growth when removing their tariff contingent effects. Taken as a whole, the evidence illustrates the value of exploring the indirect relationship between tariffs and economic growth as well as the potential usefulness of restrictive import policies for development in the periphery.

Downloads

Published

2013-08-26

How to Cite

Kwon, R. (2013). Is Tariff Reduction a Viable Strategy for Economic Growth in the Periphery? An Examination of Tariff Interaction Effects in 69 Less Developed Countries. Journal of World-Systems Research, 19(2), 241–262. https://doi.org/10.5195/jwsr.2013.506

Issue

Volume 19, Number 2, Summer 2013

Section

General Section: Articles

License

Authors who publish with this journal agree to the following terms:

  1. The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.
  2. Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
  3. The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Creative Commons Attribution 4.0 International License or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions:
    1. Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site;
    with the understanding that the above condition can be waived with permission from the Author and that where the Work or any of its elements is in the public domain under applicable law, that status is in no way affected by the license.
  4. The Author is able to enter into separate, additional contractual arrangements for the nonexclusive distribution of the journal's published version of the Work (e.g., post it to an institutional repository or publish it in a book), as long as there is provided in the document an acknowledgement of its initial publication in this journal.
  5. Authors are permitted and encouraged to post online a prepublication manuscript (but not the Publisher’s final formatted PDF version of the Work) in institutional repositories or on their Websites prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. Any such posting made before acceptance and publication of the Work shall be updated upon publication to include a reference to the Publisher-assigned DOI (Digital Object Identifier) and a link to the online abstract for the final published Work in the Journal.
  6. Upon Publisher’s request, the Author agrees to furnish promptly to Publisher, at the Author’s own expense, written evidence of the permissions, licenses, and consents for use of third-party material included within the Work, except as determined by Publisher to be covered by the principles of Fair Use.
  7. The Author represents and warrants that:
    1. the Work is the Author’s original work;
    2. the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
    3. the Work is not pending review or under consideration by another publisher;
    4. the Work has not previously been published;
    5. the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
    6. the Work contains no libel, invasion of privacy, or other unlawful matter.
  8. The Author agrees to indemnify and hold Publisher harmless from Author’s breach of the representations and warranties contained in Paragraph 6 above, as well as any claim or proceeding relating to Publisher’s use and publication of any content contained in the Work, including third-party content.

Revised 7/16/2018. Revision Description: Removed outdated link.