A robust analysis of trade policy: the chicken and softwood lumber wars

Purpose>The paper extends the robust political economy framework to analyze the impact of tariffs on the entrepreneurial market process. It proposes that the unintended consequences of using trade policy to bolster a nation's economy will inevitably prevent an economy from allocating its res...

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Bibliographic Details
Published inJournal of entrepreneurship and public policy Vol. 11; no. 2/3; pp. 273 - 291
Main Author Nathaniel Webb Smith
Format Journal Article
LanguageEnglish
Published Bingley Emerald Group Publishing Limited 25.10.2022
Subjects
Aluminum
Bureaucrats
Case studies
Consumption
Costs
Entrepreneurs
Government revenue
Knowledge
Markets
Political economy
Politics
Populism
Profits
Tariffs
Terms of trade
Trade barriers
Trade policy
Trump, Donald J
War
Canada
United States > US
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Summary:Purpose>The paper extends the robust political economy framework to analyze the impact of tariffs on the entrepreneurial market process. It proposes that the unintended consequences of using trade policy to bolster a nation's economy will inevitably prevent an economy from allocating its resources to their highest-valued use. The study aims to expand the robust political economy literature to international trade.Design/methodology/approach>The paper develops a robust analysis of trade policy and illustrates it with two case studies of trade wars: The Chicken War (1963) and the US–Canada softwood lumber disputes (1982-present).Findings>The paper provides theoretical insights into how the entrepreneurial market process is distorted by trade barriers. The case studies show that the theoretical insights have real-world implications that should not be ignored when planning trade policy.Originality/value>This paper applies a robust political economy framework to international trade.
ISSN:2045-2101
2045-211X
DOI:10.1108/JEPP-04-2022-0053