Paper Information

Journal:   IRANIAN JOURNAL OF TRADE STUDIES (IJTS)   Fall 2003 , Volume 7 , Number 28; Page(s) 5 To 5.
 
Paper: 

THE EFFECTIVE PROTECTION RATE OF MOTOGEN COMPANY

 
 
Author(s):  HEMATI A., ABDOLI GHAZI A.
 
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Abstract: 
The primary aim of most third world economic development Strategies are to foster domestic industry and the development of infrastructure. For the majority of new industrial projects in such countries, a limited period of protecting is needed. In addition to the provision of financial and credit facilities such protection primarily consists of shielding infant industries from the competition of imported goods.
The present study has aimed at assessing the effective protection rate of Motogen Company. To this end, the classic model of effective protection rate has been modified according to the conditions of Iran. All calculations of this study are related to year 1380. Free trade input-output coefficients have been used. In this study material inputs have been divided into two groups: 1) imported material inputs, 2) domestic material inputs. Effective protection rate has been assessed on the basis of two methods of tariff and price observations. The study has taken account of non - tradable inputs like the Corden Method. In one stage non-tradable inputs like the Balassa Method have also been considered. The assessments of effective protection rate have been compared on the basis of Corden and Balassa methods. The assessment of effective protection rate has been done with assuming zero substitution elasticity among the main production factors and substantial inputs. The assessments indicate that the range of effective protection rate is between 0.3463 for type SH-200 and 1.9918 for type 90L2A.
 
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