The Review of Economics and Statistics Vol. 68 No. 4 1986
The Value of Administered Protection: A Capital Market Approach
Abstract
The focus of this paper i s on the escape clause petitions filed under the Trade Act of 1974 (Section 201). First, the capital marketevent study method is used to analyze the effects of protection decisions. Then, cross-section regressions are performed to examine the influence of key variables on the observed market reaction. The authors conc lude that while protection is beneficial to beleaguered industries, the extent o f such benefits is quite narrowly circumscribed and is conditional on internal v ariables for each firm. Protection is thus not the panacea that its advocates cl aim.
- DOI
- 10.2307/1924520
- Volume
- 68
- Issue
- 4
- Pages
- 610
- Sources
- crossref openalex