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The Dynamics of Negotiated Protectionism

Published online by Cambridge University Press:  01 June 1987

Vinod K. Aggarwal ,
Robert O. Keohane  and
David B. Yoffie
Vinod K. Aggarwal
Affiliation:
University of California, Berkeley
Robert O. Keohane
Affiliation:
Harvard University
David B. Yoffie
Affiliation:
Harvard University
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Abstract

Recent protectionism by the United States has principally taken the form of negotiated barriers to trade, such as voluntary export restraints. These barriers tend to evolve over time and to display three patterns, which we label institutionalized, temporary, and sporadic protectionism. Cartel theory and studies of the politics of protection suggest that the dynamics of negotiated protectionism will depend on three variables: the barriers to entry into an industry, the size of the domestic industry, and the exit barriers for domestic firms. Low barriers to entry will lead to institutionalized protectionism when the domestic industry is large and exit difficult; temporary protectionism results when the domestic industry is small and exit easy; and sporadic protectionism is likely when barriers to entry are high. Brief studies of U.S. protectionism in textiles and apparel, steel, footwear, televisions, and automobiles illustrate the value of this framework.

Type
Articles
Information
American Political Science Review , Volume 81 , Issue 2 , June 1987 , pp. 345 - 366
Copyright
Copyright © American Political Science Association 1987

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