A non-traded input, substitution and effective protection

In this paper, we investigate whether the ERP theory will work in the sense defined by Bhagwati and Srinivasan (1973) under their restriction on tariff change in a general equilibrium model with two domestically produced tradeables, a non-traded intermediate input and an imported intermediate input, for the case of the direct-plus-indirect nominal value added and for that of the direct nominal value added, respectively.