Protectionism and international trade: A long-run view

This paper investigates the long-run relationship between international trade and protectionism, which is measured by a sub-component of KOF globalization index using standard import model with heterogeneous balanced panel 34 countries from 1970 to 2017. The tested GDP Import Intensity-Adjusted Demand (IAD) as an activity variable for performance comparison. Both specifications are estimated recent advances in autoregressive distributed lag literature cross-sectional dependence. (CS-ARDL) (CS-DL) models provide similar results. Mean group estimates show proportional impact IAD on whilst effect larger. protectionism elasticity always negative significant but less than half price elasticity.