Impact of Tariffs on Industries and Prices in Finland during the Interwar Period

摘要

While there has been some analysis of the role of tariffs in Finland during the interwar period, quantitative estimates of the benefits and drawbacks are quite rare. This article examines the impact of tariffs on industries value added and prices during the interwar period calculating the effective rate of protection as well as using an input-output price model. The basis for both calculations is an input-output table describing the Finnish economy in 1928. It is argued that the Finnish tariff policy was basically a contra-price-fall policy, directed merely towards agricultural and food products. The focus was on securing the domestic supply of food products. The results also suggest that tariffs did not provide sufficient protection to new industries - contradicting the infant industry argument repeated in some of the earlier studies.