Journal of Economic Literature
Book Reviews
2026-08-28
Irene Brambilla of Yale University reviews “The Political Economy of Protection: Theory and the Chilean Experience” by Daniel Lederman,. The EconLit Abstract of the reviewed work begins “Analyzes the history of trade protection and liberalization in Chile. Provides a historical overview of Chilean trade policy and trade openness since 1810, measured in terms of trade-to-GDP ratios, and divides Chilean history into five periods: the rise of the open economy (1810-1910), the delegitimization of free trade ideas (1911-27), the institutionalization of protectionism (1927-56), the delegitimization of protectionism (1956&ndash73), and unilateral trade liberalization from 1974 to the present. Analyzes trade-to-GDP ratios from 1810 to 1995 to empirically determine the years in which Chile experienced a “structural break” in these ratios--to identify the point at which the country turned from a historic pattern of increasing openness toward a progressive reduction in exposure to international trade. Provides an econometric analysis of the determinants of Chilean trade policy changes from 1830 to 1995. Analyzes the political and economic circumstances surrounding Chile's unilateral trade liberalization over the period 1974-2000. Considers the future of Chilean trade policy. Lederman is Senior Economist in the Office of the Chief Economist for Latin America and the Caribbean at the World Bank. Bibliography; index.”