Vol. 43 No. 1 (2023)
Jan-Mar / 2023
Published February 28, 2023
How to Cite
Bresser-Pereira, Luiz Carlos. 2023. “Import Tariffs: The Neutralization of the Dutch Disease Argument”. Brazilian Journal of Political Economy 43 (1):299-303. https://doi.org/10.1590/0101-31572023-3442.
Import tariffs: the neutralization of the Dutch disease argument
Abstract
In economics, there is just one argument legitimising import tariffs – the infant
industry argument –, but it ceases to be valid as the required learning time ends. This note
offers a second argument: the neutralisation of the Dutch disease argument. If the country
faces this competitive disadvantage, import tariffs and export subsidies may be a way of
circumventing the problem. Many countries that industrialised were only successful because
they pragmatically neutralised the disease with import tariffs.
JEL Classification: F10; F43.
Keywords: Infant industry Dutch disease import tariffs neutralisation