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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Effective protection revisited: how useful a policy tool for South Africa?
Author:Holden, MerleISNI
Periodical:South African Journal of Economics
Geographic term:South Africa
Subjects:import restrictions
preferential tariffs
trade policy
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2001.tb00029.x/pdf
Abstract:A review of the literature and issues that have surrounded the concept of effective protection is followed by a consideration of whether effective protection has influenced resource shifts over the period 1988 to 1997 in South Africa. The results of the analysis suggest that before trade was liberalized in 1995 effective protection influenced output growth in those industries where the import share was still high. Nominal protection, on the other hand, influenced employment growth. In 1997 after trade was liberalized, import penetration ratios rose throughout the economy. Although changes in effective protection influenced changes in output across all industries, their effect on employment was mainly felt where the share of imports was low. Bibliogr.