Editing Protectionism (section)

====Developing world====
{{See also|Infant industry argument|Protectionism in the United States}}

There is broad consensus among economists that free trade helps workers in developing countries, even though they are not subject to the stringent health and labor standards of developed countries. This is because "the growth of manufacturing—and of the myriad other jobs that the new export sector creates—has a ripple effect throughout the economy" that creates competition among producers, lifting wages and living conditions.<ref>Krugman, Paul (21 March 1997). [http://www.slate.com/id/1918/ In Praise of Cheap Labor] {{Webarchive|url=https://web.archive.org/web/20110907073142/http://www.slate.com/id/1918 |date=7 September 2011 }}. ''Slate''.</ref> The Nobel laureates [[Milton Friedman]] and [[Paul Krugman]] have argued for free trade as a model for [[economic development]].<ref name="See P 1994" /> [[Alan Greenspan]], former chair of the American [[Federal Reserve]], has criticized protectionist proposals as leading "to an atrophy of our competitive ability. ... If the protectionist route is followed, newer, more efficient industries will have less scope to expand, and overall output and economic welfare will suffer."<ref>Sicilia, David B. & Cruikshank, Jeffrey L. (2000). ''The Greenspan Effect'', p. 131. New York: McGraw-Hill. {{ISBN|978-0-07-134919-2}}.</ref>

Protectionists postulate that new industries may require protection from entrenched foreign competition in order to develop. Mainstream economists do concede that tariffs can in the short-term help domestic industries to develop but are contingent on the short-term nature of the protective tariffs and the ability of the government to pick the winners.<ref>{{Cite news|url=https://www.bloomberg.com/view/articles/2016-12-22/the-case-for-protecting-infant-industries|title=The Case for Protecting Infant Industries|date=22 December 2016|work=Bloomberg.com|access-date=24 June 2017}}</ref><ref name=":4">{{Cite journal|last=Baldwin|first=Robert E.|date=1969|title=The Case against Infant-Industry Tariff Protection|jstor=1828905|journal=Journal of Political Economy|volume=77|issue=3|pages=295–305|doi=10.1086/259517|s2cid=154784307}}</ref> The problems are that protective tariffs will not be reduced after the infant industry reaches a foothold, and that governments will not pick industries that are likely to succeed.<ref name=":4" /> Economists have identified a number of cases across different countries and industries where attempts to shelter infant industries failed.<ref>{{Cite journal|last1=O|first1=Krueger, Anne|last2=Baran|first2=Tuncer|date=1982|title=An Empirical Test of the Infant Industry Argument|url=http://econpapers.repec.org/article/aeaaecrev/v_3a72_3ay_3a1982_3ai_3a5_3ap_3a1142-52.htm|journal=American Economic Review|volume=72|issue=5}}</ref><ref>{{Cite journal|last1=Choudhri|first1=Ehsan U.|last2=Hakura|first2=Dalia S.|date=2000|title=International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries|jstor=3867624|journal=IMF Staff Papers|volume=47|issue=1|pages=30–53|doi=10.2307/3867624 |url=http://elibrary.imf.org/view/IMF001/03777-9781451843521/03777-9781451843521/03777-9781451843521.xml }}</ref><ref>{{Cite journal|last1=Baldwin |first1=Richard E. |last2=Krugman |first2=Paul |date=June 1986 |title=Market Access and International Competition: A Simulation Study of 16K Random Access Memories |doi=10.3386/w1936 |journal=NBER Working Paper No. 1936 |doi-access=free }}</ref><ref>{{Cite journal|last1=Luzio|first1=Eduardo|last2=Greenstein|first2=Shane|date=1995|title=Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers |journal=The Review of Economics and Statistics|volume=77|issue=4|pages=622–633|doi=10.2307/2109811|jstor=2109811|hdl=2142/29917|url=https://www.ideals.illinois.edu/bitstream/2142/29917/2/measuringperform93180luzi.pdf|hdl-access=free}}</ref><ref>{{Cite news|url=https://piie.com/publications/policy-briefs/us-tire-tariffs-saving-few-jobs-high-cost|title=US Tire Tariffs: Saving Few Jobs at High Cost|date=2 March 2016|work=PIIE|access-date=24 June 2017|language=en}}</ref>