Protección efectiva y tipo de cambio

Abstract

The analysis proposed in the paper makes possible to enlarge the effective protection tariff concept by including the effect of the exchange rate. The new formula includes both effects of variations in nominal tariffs and in the rate of exchange on the effective protection level of each good and among different goods. The rate of exchange is included due to two main reasons: 1) the authors are interested in analyzing modifications in the equilibrium position of the rate of exchange market derived from alterations in the tariffs structure; 2) the second reason is related with the empirical relevance of such analysis for Argentina, whose exchange rate has suffered important desequilibria. Besides, a "coefficient of change in the value added" is substituted for the traditional definition of effective protection as a rate. The main aspects considered are: absolute level of effective protection, relative values among goods –i.e. protective structure- and ranking of goods according to its degree of protection. In relation with these points a set of conclusion is obtained, derived from considering the following alternatives: a) a uniform a change of nominal tariffs, keeping constant the rate of exchange; b) an autonomous modification of the rate of exchange, with constant tariffs; c) the combined effect of a change of the tariffs and the induced variation in the exchange rate.