Cadot, OlivierMelo, Jaime deOlarreaga, Marcelo2014-02-262014-02-262004-09World Bank Economic Reviewhttps://hdl.handle.net/10986/17164A political economy model of protection is used to determine endogenously the intersectoral patterns of protection. Three propositions are derived that are consistent with the stylized patterns of tariff protection in rich and poor countries: Nominal protection rates escalate with the degree of processing, protection is higher on average in poor countries, and rich countries protect agriculture relatively more than they protect manufacturing, whereas poor countries do the reverse. Numerical simulations for archetypal rich and poor economies confirm that the endogenously determined structure of protection is broadly consistent with observed patterns of protection.en-USCC BY-NC-ND 3.0 IGOAGRICULTUREBENEFICIARIESBENEFICIARYBIDCAMPAIGN CONTRIBUTIONSCAPITAL OWNERSCDCETERIS PARIBUSCLAIMANTSCONSTANT RETURNS TO SCALECONSUMER SURPLUSCONSUMERSDEMOCRACYDERIVATIVEDERIVATIVESDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDEVELOPMENT ECONOMICSDOMESTIC PRICEDOMESTIC PRICESDUTY DRAWBACKSECONOMIC DEVELOPMENTECONOMIC STRUCTUREECONOMICS RESEARCHELASTICITYELASTICITY OF SUBSTITUTIONELASTICITY OF SUPPLYEQUATIONSEQUILIBRIUMEQUILIBRIUM TARIFFEQUILIBRIUM VALUEEXPENDITUREEXPENDITURESEXPORT TAXESEXPORTSFOREIGN TRADEFOREIGN TRADE POLICYGDPGDP PER CAPITAGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGOVERNMENT GRANTSGROSS DOMESTIC PRODUCTIMPERFECT COMPETITIONIMPORT COMPETITIONIMPORT PROTECTIONIMPORTSINCOMEINCOME DISTRIBUTIONINCOME LEVELSINCOMESINDUSTRIAL COUNTRIESINDUSTRIAL COUNTRYINDUSTRIALIZATIONINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL TRADEINTERNATIONAL TRADE STATISTICSLABOR MARKETLABOR MARKETSLDCSLOBBYINGLOW-INCOME COUNTRIESMARGINAL UTILITYMARKET ENTRYNEW POLITICAL ECONOMYOPEN ECONOMYOPTIMIZATIONOUTPUTPOLITICAL ECONOMYPOLITICAL ECONOMY OF TRADEPOLITICAL ECONOMY OF TRADE POLICYPOLITICAL POWERPOLITICAL SYSTEMPOSITIVE TARIFFSPRICE CHANGEPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE ELASTICITY OF SUPPLYPRODUCTION FUNCTIONPRODUCTION STRUCTURESPROTECTIONISMPROTECTIONISTPUBLIC FUNDSREPUBLICRETURNRETURNSSAFETY NETSOCIAL SAFETY NETSOCIAL WELFARETARIFF ESCALATIONTARIFF FORMATIONTARIFF NEGOTIATIONSTARIFF PROTECTIONTARIFF RATETARIFF RATESTARIFF REVENUETARIFF STRUCTURETAXTAXATIONTERMS OF TRADETRADE LIBERALIZATIONTRADE POLICYTRADE PROTECTIONTRADE REFORMTRADE TAXESURUGUAY ROUNDUTILITY FUNCTIONVALUE ADDEDWAGESWEALTHWORLD DEVELOPMENT INDICATORSWORLD TRADEWORLD TRADE ORGANIZATIONWTOJournal ArticleWorld Bank10.1596/17164