A measure of the protection provided to an industry by the entire structure of tariffs, taking into account the effects of tariffs on inputs as well as on outputs. Letting bij be the share of input i in the value of output j, and ti be the tariff on good i, the ERP of industry j is ERPj = (tj-Sibijti)/(1-Sibij). Due to Corden (1966).
Found on
http://www-personal.umich.edu/~alandear/glossary/
(from the article `international trade`) The effective rate of protection is a more complex concept: consider that the same product—clothing—costs $100 on international markets. The material ...
Found on
http://www.britannica.com/eb/a-z/e/12
No exact match found.
