How do protectionist policies help economic diversification?
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Protectionist policies can influence economic diversification in various ways. While protectionist measures like tariffs and subsidies can provide local entrepreneurs with opportunities to flourish by restricting the operations of foreign multinational enterprises (MNEs) , they can also lead to compromised outcomes when pursuing protective legislation, affecting the results activists aim for . Income diversification among households living in forest margins has shown to reduce dependency on forest resources, contributing to sustainable livelihoods and biodiversity conservation . Additionally, targeted input subsidies have been highlighted as a potential tool to support export sector development and achieve sustained export diversification, as seen in the case of Mauritius . Therefore, protectionist policies can play a role in fostering economic diversification through various mechanisms and targeted interventions.
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| Papers (4) | Insight |
|---|---|
| Protectionist policies provide time for firms to invest in cost reduction, aiding economic diversification by supporting targeted industries and enhancing competitiveness through strategic advantages against foreign firms. | |
51 Citations | Protectionist policies do not directly address economic diversification in the context of the provided research paper on income diversification and forest protection in rural households. |
6 Citations | "Protectionist policies can diversify a social movement's gains by influencing legislation, such as anti-discrimination or environmental protection laws, although outcomes may be compromised." |
5 Citations | Protectionist policies can enhance economic diversification by influencing the diversity of local entrepreneurship, as shown in the study through the interplay of MNEs, knowledge spillover, and policy interventions. |
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