The political economic relationships atmosphere in recent years, is involved interactions between policy making and economic factors. In this framework, various economic factors influence on decision making and politics formations specially trade policies. In the context of recent studies, this paper by using dynamic panel data and threshold panel data models investigates the effect of business cycles on import protection for selected developing countries during 1995-2011. The results indicate that the effect of cyclical component of GDP on Import protection is negative when the growth rate of cyclical component of GDP is raised. Also the effect of exchange rate and import penetration is negative and significant and the effects of unemployment rate and budget deficit are not significant. Finally, this paper recommends that protective policies should pay more attention to the role of the endogenous factors affecting import protection policies especially economic factors in order to increasing the success of the policies.
Rasekhi S, Jafari Samimi A, Ehsani M, Zabihi E. Business Cycles and Import Protection: A Case Study of Selected Developing Countries by Using Threshold Panel Data. qjerp 2016; 23 (76) :93-114 URL: http://qjerp.ir/article-1-1020-en.html