Utilizing the effective protection rate and domestic resource cost framework and using 1980, 1982 and 1984 establishment data, this study analyzes and evaluates the impacts of the Tariff Reform Program on the paper industry. It identifies the adjustment problems and provides an indication on the kind of assistance and policies appropriate to the industry. Results show the inverse relationship between protection and efficiency. While DRC variations can be attributed to factor productivity improvements in efficiency are ascribed to increasing value added and declining import content. In general bigger firms are found to have higher efficiency and can adjust better to lower protection rate than smaller firms.
