Shipbuilding/Repair andBoatbuilding industry
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20.23 percent in 1988 to 42.86 percent in 1991. The 1991 figure, however, is slightly lower than the 1986 figure of 43.05 percent. On the other hand, the SB/SR sector experienced a tremendous reduction in tariffprotection from 36.92 percent in 1986 to only 1.74 percent in 1991.The main reason for these changes is that there was a reduction in output tariff rates from an average of 30 percent in 1986 to 6.5 percent in 1991 for the SB/SR sector, and an increase from 37 to 50 percent for the boatbuilding sector.Tariff rates on the inputs of the SB/SR sector hardly changed, although that of the boatbuilding sector declined from 22.87 to 16.26 percent. Looking at the NEPRs, one finds that the SB/SR sector is receiving negative protection while the boatbuilding sector is still receiving protection. The 1991 TRP therefore increased the tariff protection received by the boatbuilding sector, while it reduced that of the SB/SR sector. How these trade policy developments will affect the performance of the firms will be discussed in the next chapter.