Tariffs and growth in the late nineteenth century

Economic theory is ambiguous as regards the relationship between trade policy and growth. The growth literature of the past decade has produced an impressive array of models in which protection can either increase or reduce long-run growth rates (Grossman and Helpman, 1991; Rivera-Batiz and Romer, 1991; Stokey, 1991; Young, 1991). Such theoretical ambiguity invites empirical research.