Who benefits from trade wars?

Author (Person) ,
Series Title
Series Details Vol.53, No.1, January 2018, p22-26
Publication Date January 2018
ISSN 0020-5346
Content Type


Even though economists keep on emphasising the benefits of international trade, protectionism is on the rise in many industrialised countries. The authors argue that a potential explanation for this phenomenon can be found in the short-run distributional effects of import tariffs: while protectionism hurts the economy from an aggregate perspective (i.e. GDP goes down), unskilled workers in import-competing sectors benefit in the short run and do not lose in the long run. They might therefore lend political support to protectionism.

Source Link https://dx.doi.org/10.1007/s10272-018-0714-y
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Countries / Regions