Revisiting the tariff-growth correlation: The Australasian colonies, 1866–1900

Abstract

This article tests for the presence of a tariff-growth correlation among the seven tariff-autonomous colonies of late-nineteenth-century Australasia, making use of several colony-specific macroeconomic series that have only recently become available. Introducing tariffs to a convergence model yields no evidence of an association between tariffs and growth among the Australasian colonies. This finding is unaltered when the tariff variable is replaced by a purposefully constructed proxy variable for the tariff on manufactures specifically. Additionally, this article finds little evidence that tariffs induced an intersectoral adjustment into manufacturing.