Rate of Effective Protection

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Rate of Effective Protection

The added value to a domestically produced good or service resulting from a tariff that keeps out (or makes more expensive) foreign goods and services. That is, because the tariff make foreign goods and services more expensive than they otherwise would be, domestic goods and services are not forced to cut their own prices, which adds value and results in higher profits.
References in periodicals archive ?
The average rates of effective protection 3 was high as 271 per cent in 1963-64 (see Lewis & Guisinger (1968) and Little, Scitovsky and Scott (1970).
This also shows why efficiency improved over the 1980-81 to 1990-91 period despite rising rates of effective protection.
The average rates of effective protection were obtained by weighting effective rates estimated for the sectors by sectoral value-added evaluated at world prices.