Computer simulation research for Infant Industry Theory based on Repast Simphony
DOI:
https://doi.org/10.3991/ijoe.v11i7.4760Keywords:
infant industry, tariff barriers, computer simulation, Repast SimphonyAbstract
Through analyzing logical defects of Friedrich List’s infant industry theory, this paper obtains two hypothesis. One is that no industry is with single product portfolios, and so it is difficult for the developed countries defeating under-developed countries’ infant industry completely according to the comparative advantage theory. This implies that under-developed country could obtain more survival opportunities if it leverages appropriate product diverse strategies. The other hypothesis is protecting infant industry by tariff barriers would increase the cost of whole society, which slows down the development of infant industry, and that damaging interests of both backward country and powerful country. We construct a computer simulation model on Repast Simphony platform to verify the above two hypothesizes, and our simulation results show that the above two hypotheses make sense. We also got an unexpected result that it will lead to significant decline of the yield of the infant industry if one country in the trade exerts tariff barriers, meanwhile, the yield of the other countries will also decline but the decreased amount of the infant industry of the under-developed country obviously exceed the developed country, which means the trade protection damages both side of trade and the underdeveloped country get more injury. That implies the assumption of the tariff barriers protecting and accelerating the development of infant industry does not make sense.
Downloads
Published
How to Cite
Issue
Section
License
The submitting author warrants that the submission is original and that she/he is the author of the submission together with the named co-authors; to the extend the submission incorporates text passages, figures, data or other material from the work of others, the submitting author has obtained any necessary permission.
Articles in this journal are published under the Creative Commons Attribution Licence (CC-BY What does this mean?). This is to get more legal certainty about what readers can do with published articles, and thus a wider dissemination and archiving, which in turn makes publishing with this journal more valuable for you, the authors.
By submitting an article the author grants to this journal the non-exclusive right to publish it. The author retains the copyright and the publishing rights for his article without any restrictions.