Infant industries have frequently failed to achieve sustained growth after protection
the verdict
SUPPORTED
the evidence backs this
confidence 79/100
Empirical analyses of protected sectors like Brazilian ethanol and Argentine biodiesel demonstrate that infant industries frequently fail to achieve viable, sustained growth or cost reductions despite receiving government support.
Evidence for · 2
Evidence of the empirical relevance of the infant industry argument for the protection of Brazilian ethanol production
1994 · cited by 3
The study on the Brazilian ethanol industry finds no empirical validity for the infant industry argument, showing a lack of significant cost reductions or economies of scale.
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More for · 1
Rents, “infant industry” and contingent protection policies: gains and losses for Argentina’s biodiesel industry / Rents, “infant industry” and contingent protection policies: gains and losses for Argentina’s biodiesel industry
2020 · cited by 0
The study on Argentina's biodiesel industry highlights how protectionist policies and subsidies created long-term vulnerabilities, risks, and market distortions rather than sustained independent growth.