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E N G E R , Thomas Peter, 1938- PROTECTIONISM AMD DEVELOPMENT.

The Ohio State lloiversity, Ph.D., 1965 , theory

University Microfilms. Inc., Ann Arbor, Michigan PROTECTIONISM AND DEVELOPMENT

DISSERTATION

Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University

By

Thomas Peter Enger, B.A., M.A.

The Ohio State University 1965

Approved by

iser Depaxvt&ent of Economics ACKNOWLEDGMENT

I extend my deepest appreciation to my adviser,

Professor Clifford L. James for his counsel.and patient reading of the dissertation. 1 also thank Professor

Mikhail Condoide and Professor Alvin E. Coons for their helpful suggestions. Lastly, 1 wish to acknowledge the aid of my wife, Jacqueline, who spent many hours reading copy for spelling and grammatical errors.

ii ¥ i m

April 21, 1938 Bo3*32 — leer Lodge, Montana

I 9 6 0 ...... B.A.o fisstaca State University, Missoml©, Montana

1961-1962...... Gradtmate Assistant, Department of Economies, Montana State University, Missoola, Montana

1962...... M„A. 9 Montana State University Missonala„ Montana

1962-196 5..... Assistant instructor, The Ohio State Iniwersity ColEiim&as „ Ohio

FlSaUiH® ©F STUDY

Major Field: Economics

Studies in Economic Slkeor y. Professors Clifford L. James, Diram BosBemhorn * and Robert Patton

Studies in and Finance. Professor CliifforcS L. James

Studies in Public Finance. Professor Francis Woodard

Studies in . Professor Meno Lovenstein

Studies in Sociological Theory. Professors Roscoe Hinkle and Alined Clarke TABLE OF CONTENTS

Page

IJ.TTSTT* Gff TABLES ...... v

JLESE OF ILLUSTRATIONS...... Vi lafflffitte-r-

E. THE PROBLEM OF AND DEVELOPMENT ..... 1

EE. DUALISM AND INTERNATIONAL TRADE...... 8

EEE. UNDERDEVELOPMENT AND INTERNATIONAL TRADE . . 35

EW. INTERNATIONAL TRADE AND DEVELOPMENT.. 56

V. TRADE AND GROWTH IN P E R U ...... 8 5 WE. BURMA’S EXPERIENCE WITH FOREIGN TRADE. . . . 101

WEE. FOREIGN TRADE OF JAMA I C A ...... 117

WEEE. SUMMARY AND CONCLUSIONS. . . 131

MEELSOGHAPHY ...... 1^3

iv LIST OF TABLES

Table Page

1. Common Duties on Cocoa Products .... 6l

2. ’s Growth of Real GNP and Population . . . 89

3. Peru's Ratio of Exports to G N P ...... 91

k, Peru's Changing Composition of Exports .... 92

5. Burma's National Income Growth ...... 10k

6. Burma's Ratio of Exports to GNP...... 107

7. Burma's Export Composition ...... 108

8. Percentage Distribution of Burma's GNP. . . . 113

9 . 's Rate of Growth of GNP and Population 118

10. Ratio of Value of Exports to GNP for Jamaica, 121

1 1 . Jamaica's Export Composition ...... 122

12. Jamaica's Imports ...... 129

v LIST OF ILLUSTRATIONS

Figure Page

1 . Technological Dualism ...... 10

2- Money Costs Greater Than Real C o s t s ...... 25

3 . Trade and G r o w t h ...... 79

h. Export-Biased Growth...... 80

5- Import-Biased Growth...... 81

6 * A Special Growth Case ...... 82

vi CHAPTER I

THE PROBLEM OF TRADE AND DEVELOPMENT

In the development of the theory of international trade one of the most important generalizations is that free »ith some exceptions, will provide not only gains from specialization and division of labor but also a stimu­ lus to the economic development