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Topic: Effective rate of protection

In the News (Thu 21 Mar 19)

  International Economics Glossary: E
Protection that is explained as the outcome of economic and/or political forces.
Rationing of foreign exchange, typically used when the exchange rate is fixed and the central bank is unable or unwilling to enforce the rate by exchange-market intervention.
The process by which a country's exchange rate comes to be what it is. With a floating exchange rate, this may be modeled in various ways, including the elasticities approach, the monetary approach, the portfolio approach, and the asset approach.
www-personal.umich.edu /~alandear/glossary/e.html   (4329 words)

 Effective rate of protection - Wikipedia, the free encyclopedia
The effective rate of protection is a statistic used by economists to measure the real protection yielded by import duties or tariffs.
The effective rate of protection is used to estimate the protection really afforded to domestic producers at each stage of production, i.e., how much extra they can charge and still be competitive with imported goods.
The effective rate of protection reveals the extremely adverse effect of tariffs that escalate from low rates on raw materials to high rates on intermediate inputs and yet higher rates on the final product as, in fact, most countries' tariff schedules do.
en.wikipedia.org /wiki/Effective_rate_of_protection   (318 words)

 [No title]
The most straightforward measure is based on the standard analysis of a tariff: the nominal rate of protection (NPR) is given as the increase in the revenue per unit (producer price) in the presence of the policy relative to that which would be obtained in the base (no-policy) state.
It was concern about the possible exchange rate misalignment in developing countries that induced economists in the 1980s to incorporate some measure of this exchange rate phenomenon in the measures of agricultural protection, and to calculate what is often referred to as the “indirect” rate of protection.
Strictly speaking, indirect protection at least in the Krueger, Schiff and Valdés approach is not confined to exchange rate misalignment alone; it attempts to capture also both the influence of industrial protection and of macroeconomic variables (specifically, the "excess" deficit in the current account) on relative prices from an economy-wide perspective.
www.fao.org /DOCREP/006/J1866E/j1866e05.htm   (2085 words)

 [No title]   (Site not responding. Last check: 2007-10-22)
Effective rate of protection and investment incentives:a case study of the united, kingdom manufacturing industries/Hamid Reza Eftekhari.
In this study the investment incentive measures practiced by the goverment of the United Kingdom are incorporated into the concept of effective rate of protection in order to determine the overall level of protection provided to 25 industries in that nation.
A modified version of effective rate of protection is utilized to calculate the levels of protection for those industries.
dbase.irandoc.ac.ir.cob-web.org:8888 /00227/00227244.htm   (147 words)

 Session 7 Import Substitution-Industrialization (ISI)   (Site not responding. Last check: 2007-10-22)
Effective tariff rate:  When the nominal rates of tariff for a final product and its component parts or inputs are different can effectively increase the protection of the domestic product beyond the nominal tariff rate.
There are two different nominal tariff rates, one for the pair of shoes itself (t,) say taxed at 50% and another for the shoe laces, one of the shoes component parts (t1), say taxed at 10%.
The consequence of tariff protection is that the higher the effective tariff rate the greater the difficulty for foreign manufactures to compete with protected domestic manufactures in the final consumer goods market.
www.uap.vt.edu /classes/uap4764/session7.htm   (2231 words)

 Trade Restrictions   (Site not responding. Last check: 2007-10-22)
The nominal rate of protection offered by a tariff to domestic producers is the value of the import tariff on their good.
ERP is the percentage by which a country's trade barriers increase the value added per unit of output, considering the fact that tariffs on inputs matter as well as tariffs on outputs.
In this case, the 10% tariff on steel (which is a cost to producers) is effectively a 40% tariff.
www.eco.utexas.edu /graduate/Konstantinova/i5_TradeRest.htm   (1438 words)

 Social Protection Sector - Brochure
In leading the actions to achieve the ILO's Strategic Objective3, the Social Protection Sector is supported by the field and regional units of the ILO and follows the orientations and priorities set by the ILO constituents for the different regions.
The social protection sector in Central and Eastern Europe and in the Commonwealth of Independent States (CIS) is first characterized by the difficulties facing traditional social security schemes which were not adapted to the new conditions resulting from transition from centrally planned to market economy.
The Social Protection Sector also addresses the need of the most vulnerable groups, which, in most cases, are single parent households, the long-term unemployed, and workers in small enterprises or in the informal sector, the elderly and pensioners, and contributes to the design of integrated poverty alleviation policies and strategies at the national level.
www.ilo.org /public/english/protection/about/brochure/brochure2.htm   (1160 words)

 Economic Analysis of Projects - Effective Protection or Effective Assistance - ADB.org   (Site not responding. Last check: 2007-10-22)
The effective assistance ratio considers the total return to the activity, considering the protective effect of net taxes on outputs and net subsidies on inputs.
The effective assistance ratio for a sector can be compared with those of other sectors to identify which receive the most protection.
Where the effective assistance ratio shows a high value relative to other sectors, it can be claimed that the sector or project is particularly favored by the structure of taxes and subsidies.
www.adb.org /Documents/Guidelines/Eco_Analysis/effective_protection.asp   (306 words)

 The Public Affairs Magazine- Newsinsight.net (via CobWeb/3.1 planetlab2.isi.jhu.edu)   (Site not responding. Last check: 2007-10-22)
It also follows that an input tariff rate that is equal to the tariff rate on output is not (we emphasise not) an anomaly.
The impact on the effective protection rate is generally arbitrary and unknown.
The rate of effective protection is, therefore, neutral and equal for all value added by domestic producers.
www.indiareacts.com.cob-web.org:8888 /archivespecialreports/nat2.asp?recno=31&ctg=Business   (1649 words)

 Effective Fire Protection - The PPC program helps insurers market their products and serve their customers with fair, ...   (Site not responding. Last check: 2007-10-22)
Effective Fire Protection - The PPC program helps insurers market their products and serve their customers with fair, affordable prices.
Much of the United States has marginal or inadequate fire protection, placing people and property at risk.
One of the key indicators of the potential severity of loss at a given location is the available fire protection.
www.iso.com /studies_analyses/fireProtection/docs/p6.html   (806 words)

 Al-Ahram Weekly | Economy | Not too far
The customs reforms introduced in September 2004 cut the number of tariff bands from 27 to six and reduced the average nominal tariff rate from 21.3 per cent to 12.1 per cent.
The paper shows that trade liberalisation has helped lower the effective rate of protection though it points out that the manufacturing sector continues to enjoy strong protection.
The report also stresses the need to maintain pro-export policies, "the most critical of which is related to exchange rate competitiveness in the context of a monetary policy of inflation targeting." It also called for measures to reduce transaction costs, improve contract enforcement and enhance policy predictability.
weekly.ahram.org.eg /2005/757/ec3.htm   (422 words)

The usual definition of the effective rate of protection is the percentage change in value added per unit induced by the tariff structure.
The effective rate of protection for sector j is defined here as the uniform tariff which is equivalent to the actual differentiated tariff structure in its effects on the rents to residual claimants in sector j.
Like the earlier effective rate formula, the concept is operational using the widely available set of Computable General Equilibrium (CGE) models.
www.inomics.com /cgi/repec?handle=RePEc:boc:bocoec:273   (149 words)

 How do countries insulate their industry? - The Economic Times   (Site not responding. Last check: 2007-10-22)
Countries have protected their domestic spheres of economic activity on the grounds that such protection gives “rightful” defence against the “perils” of competition (sometimes unfair) from imported goods and services.
The only justifiable argument for a high level of protection is the infant industry argument, which calls for a temporary period of protection.
The principle that underlies this re-appraisal of the rate of protection is that the tariffs on inputs matter as well as the tariffs on output.
economictimes.indiatimes.com /articleshow/755860.cms   (718 words)

 Implications of Economic Policy for Food Security : A Training Manual
In the case of an overvalued exchange rate, the indirect protection rate has a negative value (signifying negative protection/taxation) which may be compounded or compensated by the effects of direct protection (taxes imply negative, subsidies positive protection rates).
This is necessary because the ultimate effect of protection is always two-fold: (i) it changes the combination of tradables produced moving it away from the optimal one and, (ii) it changes the combination of tradables and non-tradables.
There are other forms of measuring protection, apart from the NPR, such as the "effective rate of protection", "subsidy equivalents", or "real income gap" measures.
www.fao.org /DOCREP/004/X3936E/X3936E14.htm   (550 words)

 [No title]
Using the formula, show what rate of tariff on the imported inputs would lead to a rate of effective protection that would be the same as the nominal tariff rate.
Give an example of a tariff rate on the imported inputs that would result in a rate of effective protection that is lower than the nominal rate of protection.
Label revenue, protective, consumption and transfer effects of the tariff and explain which of these would be dead-weight losses and why.
courses.wcupa.edu /rbove/eco338/338x9921.doc   (824 words)

 Condoms: Effective birth control and protection from sexually transmitted diseases - MayoClinic.com   (Site not responding. Last check: 2007-10-22)
Used consistently and correctly, condoms are highly effective at preventing the transmission of the human immunodeficiency virus (HIV), the virus that causes AIDS, and at reducing the risk of infection from other STDs.
Condoms protect the penis and urethra, where sexually transmitted infections may begin after contact with STD-causing agents in the partner's vagina, rectum or mouth.
In turn, they protect men's partners from sexually transmitted organisms that may be in penile lesions, semen or pre-ejaculatory fluid.
www.mayoclinic.com /health/condoms/HQ00463   (1091 words)

 aw_todarosmit_econdevelp_8|Student Resources|Chapter 13: The Trade Policy Debate: Exp|Graphing and Quantitative ...
In an effort to protect domestic chicken-fried steak producers from foreign competition, the government levies a 15% tariff against imported chicken-fried steak.
The effective rate of protection is ERP = ($4.65 – $4)/$4 = 0.1625 = 16.25%.
At an exchange rate of 100, quantity demanded will be 6,000, and quantity supplied will be 3,214.
wps.aw.com /aw_todarosmit_econdevelp_8/0,6111,284798-,00.html   (465 words)

 Economics 440 Chapter 4 Notes   (Site not responding. Last check: 2007-10-22)
Effective rate = nominal rate if tariff on final good equals tariff on input
Effective rate is greater the greater the share of the input in the final value (if tariff on final good is not equal to tariff on input
Effective rate can be negative if tariff on input is greater than tariff on final good
www.bridgewater.edu /~dhuffman/econ440/Lectures/ch4.html   (211 words)

 Effective interest rate (via CobWeb/3.1 planetlab2.isi.jhu.edu)   (Site not responding. Last check: 2007-10-22)
Purchase car loan interest rate is not historical interest rate, low interest rate by mortgage interest rate calculator, savings account interest rate either savings interest rate is not lowest interest rate.
More information on bank interest rate savings, mortgage loan interest rate and details of interest rate risk and this is the best resource on effective interest rate, mortgage interest rate in illinois is current interest rate on home loan real estate interest rate, mortgage trend interest rate features.
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www.mortgage-providers.net.cob-web.org:8888 /effective-interest-rate.html   (1160 words)

 Effective rate - Estimating the most cost effective N rate. Soure: MSU-E Bulletin E-802 (via CobWeb/3.1 ...   (Site not responding. Last check: 2007-10-22)
Effective rate - Estimating the most cost effective N rate.
This paper develops simple queueing models and a simulatin to show how this effective rate depends on R and N, and the parameters of the data traffic.
In this activity, students use the effective annual rate calculation to compare the nominal rates of various financial instruments.
boote.siteslinks.com.cob-web.org:8888 /sil/boote-effective-rate.htm   (255 words)

 Drinking Water Protection
The protection of ground and surface water from which all of us get our drinking water from is an important health issue.
Protecting public water supply wells from contamination involves the cooperation of public water suppliers, state and local agencies, property owners, farmers, businesses, and the general public.
Wellhead Protection activities prevent well contamination by managing potential contaminant sources in the land area that contributes water to the well.
www.mda.state.mn.us /water/protection/default.htm   (541 words)

 SSRN-EU Trade Policies: Benchmarking Protection in a General Equilibrium Framework by Alessandro Antimiani, Luca ...
As far as the first objective is concerned, we construct bilateral indicators of protection based on the applied tariffs faced by each exporter.
In this respect, we compute effective rates of protection that overcome the well-known theoretical shortcomings of the traditional definition (Output Effective Rate of Protection).
Both bilateral protection and effective protection rates are broadly consistent with the evolution of the WTO negotiations: the strongest demands from developing countries in terms of market access in the EU have less to do with the overall applied MFN tariffs on industrial products than the reduction of distortions affecting trade in agriculture.
papers.ssrn.com /Sol3/papers.cfm?abstract_id=903290   (420 words)

 Homework Helper   (Site not responding. Last check: 2007-10-22)
192-193 where the effective rate of protection concept is discussed.
Before the tariff the car manufacturer could only compete if it cost an additional $2000 to assemble a car and after the protective tariff it can still compete if it costs as much as $4000 to assemble.
In the car example, the effective rate of protection was 100 percent.
www.vermontel.net /~hancockp/hmhelp.htm   (389 words)

 The Hindu Business Line : `Industry fears over lower customs duty unwarranted' — Kelkar panel member defends ...
After the implementation of State-level VAT and if the proposed customs duty changes are adhered to, the level of protection will only be higher for the domestic industry", Mr Gautam Ray, Finance Ministry official and a member of the Task Force Chaired by Dr Vijay Kelkar, said at an interactive session organised by FICCI.
The members, however, said that the proposed regime would only give a higher rate of effective protection for the domestic refineries and that the apprehensions of FICCI over this matter were misplaced.
The effective rate of protection would be much higher for domestic refineries when the State-level VAT comes into force", a member said.
www.blonnet.com /2002/11/23/stories/2002112302520500.htm   (567 words)

 Choose your cover: finding effective sun protection
Whereas, sun protective clothing (also known as ultraviolet radiation protective clothing; or "UVR") is widely used in Australia, Europe, and South Africa, it is still relatively unknown here in the U.S. Sun protective clothing, however, is a highly effective option for individuals to protect themselves from the harmful affects of UV-rays all day, every day.
If you consider that the average white 100% cotton tshirt is equivalent to only a SPF 6 (which provides about 14% worth of sun protection), clearly there is a need for light-weight, functional, stylish, economical, clothing that also provides exceptional protection from over-exposure to the sun.
Stingray is the original sun protection clothing company to specialize in UV protection swimwear and daily attire for children and adults.
www.unionsentinel.com /news/2006/0427/home/061.html   (904 words)

18. Suppose that the dollar-pound spot rate is 2 dollars to a pound, the dollar-yen spot rate is 2 dollars to an yen, and suppose the pound-yen spot rate is 2 pounds to an yen.
The interest rate on German deutchemark denominated deposits is 3%.
As part of the system assume that the exchange rate between the French Franc and German Mark is fixed at FF 3= DM1.
www.tricity.wsu.edu /~achaudh/Econ470sp99final.html   (1032 words)

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