Victoire Girard, 19 May 2018

Affirmative action policies are widely used to tackle the underrepresentation of certain groups. However, the efficiency of these policies is fiercely debated. This column uses novel data from India to explore how affirmative action quotas affect everyday discrimination. Local political council quotas for marginalised castes are found to reduce caste-based discrimination by around one fifth, but the effect disappears when the quotas are removed.

Giancarlo Corsetti, Meredith Crowley, Oliver Exton, Lu Han, 13 December 2017

As the recent UK Parliament Select Committee hearing revealed, there is a dearth of analysis of the sector-level risk to exports of a ‘no deal’ Brexit scenario. This column presents an analysis by sector and product, and delivers both good and bad news. In a scenario where trade reverts to WTO rules, the good news is that one-third of UK exports to the EU will remain tariff-free. The bad news is that one-quarter of exports will face high tariffs and/or the risk of restrictive quotas or antidumping duties.

Guilhem Cassan, Lore Vandewalle, 09 December 2017

Many policies are designed along a particular identity dimension, such as gender or ethnicity. However, such efforts overlook the fact that individuals are associated with several identity dimensions at a time. Using Indian data, this column demonstrates how the intersection of different identity dimensions may lead to unanticipated effects. It shows that political quotas for women in local elections change policies not only in favour of women, but also in favour of low castes.

Alan de Bromhead, Alan Fernihough, Markus Lampe, Kevin O'Rourke, 24 March 2017

With Brexit looming, and protectionist pressures mounting elsewhere in the developed world, the question of whether trade policy matters is taking on more significance. This column looks at the extent to which trade policy was responsible for the shift towards intra-imperial trade in the interwar period. Both tariffs and quotas increased the Empire’s share of British trade, suggesting that trade policy mattered more for interwar trade patterns than the cliometric literature has suggested.

Kozo Kiyota, Tetsuji Okazaki, 06 January 2014

The presumed success of Japanese post-war industrial policy has been used to advocate similar policies in other countries. Key to such arguments then is the empirical demonstration of the policies’ effects. This column presents research making use of a novel dataset that allows controlling for industry heterogeneity across many disaggregated industries. The effects of the quota removal on productivity were significantly positive, while the effects of tariffs on labour productivity were insignificant.

Lawrence Edwards, Robert Lawrence, 20 November 2013

Preferential import policies that allow developing markets to export to advanced economies are intended to dynamically promote development rather than just provide basic gains from trade. This column argues that the Africa Growth and Opportunities Act achieves the latter but not the former, distorting incentives along the value-added chain. While beneficial, preferential trade deals are not a panacea and are certainly not a replacement for pro-development policies.

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