TY  - JOUR
AU  - Turnovsky,Stephen J.
TI  - Tariffs and Sectoral Adjustments in an Open Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3315
PY  - 1991
Y2  - February 1991
UR  - http://www.nber.org/papers/w3315
L1  - http://www.nber.org/papers/w3315.pdf
N1  - Author contact info:
Stephen Turnovsky
Department of Economics
301 Savery Hall; Mail Stop DK 30
University of Washington
Seattle, WA   98195
Tel: 206-545-8028
E-Mail: sturn@u.washington.edu
AB  - This paper analyzes the impact of a tariff on sectoral adjustments in an economy which produces two traded consumption goods, one of which is exported, and a non-traded investment good. The importance of sectoral capital intensities is emphasized. In particular, the qualitative dynamic adjustment depends upon the relative capital intensities of the import-competing consumption good sector and the non-traded investment good sector. Sectoral labor allocation effects are analyzed and the long-run effect on aggregate capital accumulation is shown to depend upon the relative capital intensities of the import and export sectors. Temporary as well as permanent tariffs are discussed.
ER  -