A comment on some features of ‘true protection’

Some features of ‘true protection’: A reply

“…In the presence of export protection (a positive export subsidy) Singh [1988] argues that the model does not correctly capture the relationship between the three prices, PH. PM.…”

“…The results of the model are in fact necessarily consistent with the assumptions of the model, and the comments by Singh are the outcome of some misunderstanding and of some incorrect analysis on his part. 1 The three substantive criticisms raised by Singh [1988] are:…”

“…Even within the partial equilibrium framework employed by Singh [1988], it is possible for the domestic price of exportables to adjust. The world price of exportables is constant but a change in the domestic price of exportables could be accommodated by exchange rate adjustment.…”