ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Protection and Exports

Protection and Exports Aditya Bhattacharjea IN demonstrating that under certain circumstances tariffs protection can in fact promote exports by the protected industry, Marjit and Sarkar (1995; hereafter MS) have unwittingly rediscovered a result published by Bhagwati (1988) in a little-known paper. In Section I of this brief note, after restating their result. I summarise some of the important qualifications to this argument that Bhagwati pointed out, and add some caveats of my own. In Section II, I examine their parallc vestigation of the export- promoting effect of a quota, and point out that they have overlooked some crucial implications of their own analysis.

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