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NewProtectionistTendenciesandInclinationtoBilateralismandRegionalism...
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Ifanauthoritariangovernmentismoreorlesscorruptedthanademocraticone,it
willbecreatingtheincome,toabiggerorlesserdegree,throughprotectionism.
Itwillalsoappropriatesomepartofthatincome.Secondly,agiventypeof
governmentmayremainundertheinfluenceofdifferentpressuregroups.If
anauthoritariangovernmentistrying,tosomeextent,tosubordinatespecial
pressuregroupsincludingtheregulatedlaborsector,itwillbe,tosomeextent,
generatingincomesthroughprotectionanditwillbeturningoversomepartof
themtothosespecialpressuregroups.
4.LevelofProtectionistPressures
Theaboveargumentsshowthatthepolicyisdefinedbypoliticalfactors(including
thetypeofthegovernmentandtheburdensresultingfromobligationstowards
employeesandcapitalists),andbyeconomicalfactors(wages,prices,thestructure
ofproductionandconsumption).Onthebasisofthepresentdiscussion,wecan
presenttwoequations,onepertainingtothelevelofprotection,andthesecond
pertainingtothenationaleconomyanddeformationofwages.
1)π=f(e,l,k,R),
2)φ=f1(π,e,l,k,R),
Thelevelofprotection(π)dependsontheeconomicparameters(e),arelative
politicalimportanceofurbanisedemployeesandcapitalists(landk,respectively),
andonthetypeofthegovernment(R).Deformationofwagesis,ontheother
hand,thefunctionofπandofe,l,kandR.Incaseofasmalleconomy,
economicparametersthatcaninfluenceπandφincludeflexibleconsumerand
producerprices,demandflexibility,wagesandthedemandforlaborforce,and
alsothepriceofgoodsonaninternationalmarket.
Onecanexpect,apriori,thatthegrowthofπisdependentonlandk.
Ifinterestgroupsbecomestronger,thepressuretoformincomesbasedon
protectionismmaybecomestronger.TheinfluenceofR,thatis,theinfluence
ofapoliticalauthoritarianismonthelevelofprotectionism,thatis,π,depends
onthefactwhethertheopinion,thatthelevelofprotectionismdependsonthe
effectsofdemocratization,iscorrect.Itisalsothoughtthattheincreaseofthe
deformationofwagesdependsonπandl,whileitsdecreasedependsonk.
Aslongastheincomesareobtainedfromtradeprotections,thoseincomes
canbehandedovertourbanizedemployees.Animportantproblemincaseof
urbanizedlaborforceasaninterestgroupwithgrowingstrengthisthefact
thaturbanizedemployeesmaygainabigshareinthedivisionofincomesbut
thegrowthofpoliticalimportanceofthecapitalistsmaycausethattheshared
