Trade protection in a declining industry can cause damages beyond those revealed in the usual trade diagram analysis. Using data on the U.S. steel firms, the authors show that trade protection in that industry rewards poor performance, reduces incentives to innovate, and frustrates the normal Schumpeterian process of creative destruction.
No takes yet. Share an insight, caveat, or question.
Lenway et al. (1996) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: