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Increasing protection in the world economy, especially in industrialised countries since the 1970s has increased the costs of restricting international trade. It is shown that in West Germany under inter‐industry specialisation the short‐run burden of protection is shared nearly equally by producers of non‐tradeables and exporters. In the longer run the costs shift more towards exporters. Under intra‐industry trade, however, a considerable portion of the burden is shifted onto producers of home goods in the short run. This portion even increases over time. Therefore, it is evident that the home goods sector is especially hit by import protection.

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