Chapter

The Infant Industry Argument

W. Max Corden

in Trade Policy and Economic Welfare

Second edition

Published in print February 1997 | ISBN: 9780198775348
Published online November 2003 | e-ISBN: 9780191715471 | DOI: http://dx.doi.org/10.1093/0198775342.003.0008
 The Infant Industry Argument

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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

Chapter.  11074 words.  Illustrated.

Subjects: International Economics

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