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Deliberate Surrender? The Impact of Interwar Indian Protection

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  • Vellore Arthi
  • Markus Lampe
  • Ashwin R Nair
  • Kevin Hjortshøj O'Rourke

Abstract

What is the role of trade policy in promoting intra-Empire trade? We address the question in the context of interwar India, whose trade policies have been accused of harming British export interests. We quantify the impact of trade policy on the value and composition of Indian imports, using novel disaggregated data on both trade policies and imports for 114 commodity categories coming from 42 countries. We find that even though Indian protection lowered total imports, it substantially boosted imports from the UK. Despite the rising tariff barriers facing British exporters, trade diversion from other countries ensured that Indian trade policy benefited them overall.

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  • Vellore Arthi & Markus Lampe & Ashwin R Nair & Kevin Hjortshøj O'Rourke, 2020. "Deliberate Surrender? The Impact of Interwar Indian Protection," NBER Working Papers 27178, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27178
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    Cited by:

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    2. Roberto Bonfatti & Björn Brey, 2024. "Trade Disruption, Industrialisation, and the Setting Sun of British Colonial Rule in India," Journal of the European Economic Association, European Economic Association, vol. 22(3), pages 1407-1451.
    3. Ian Keay & Brian D. Varian, 2024. "The impact of preferential market access: British imports into Canada, 1892–1903," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(1), pages 140-164, February.
    4. Pim de Zwart & Markus Lampe & Kevin Hjortshøj O'Rourke, 2024. "The last free traders? Interwar trade policy in the Netherlands and Netherlands East Indies," Economic History Review, Economic History Society, vol. 77(3), pages 1057-1085, August.
    5. Kris James Mitchener Author e-mail: [email protected] & Kirsten Wandschneider Author e-mail: [email protected] & Kevin Hjortshøj O’Rourke Author e-mail: [email protected], 2021. "The Smoot-Hawley Trade War," Working Papers 20210061, New York University Abu Dhabi, Department of Social Science, revised Mar 2021.
    6. Alan de Bromhead & Alan Fernihough & Markus Lampe & Kevin Hjortshøj O'Rourke, 2021. "Four great Asian trade collapses," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 61(2), pages 159-185, July.
    7. Kris James Mitchener & Kevin Hjortshøj O'Rourke & Kirsten Wandschneider, 2022. "The Smoot-Hawley Trade War," The Economic Journal, Royal Economic Society, vol. 132(647), pages 2500-2533.
    8. Laura Panza, 2024. "From a common empire to colonial rule: Commodity market disintegration in the Near East," Economic History Review, Economic History Society, vol. 77(2), pages 584-611, May.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East

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