|Author (Person)||Lechthaler, Wolfgang, Mileva, Mariya|
|Series Details||Vol.53, No.1, January 2018, p22-26|
|Publication Date||January 2018|
|Content Type||Journal | Series | Blog|
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.
|Countries / Regions||Europe|