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ISI and New Industrial Conditions in Latin America and Africa

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  • Christopher E.S. WARBURTON

Abstract

This paper examines the relationship between industrial value added and economic liberalization for a variety of relatively small economies that adopted import-substituting industrialization (ISI) and export led growth in the past. The strong economic performance by some Sub-Saharan African countries in an era of globalization induces inquiry into the contribution of industry to economic growth for a variety of small economies with different political structures and industrial policies. Using cointegration and time series data, this paper finds that industry value added has a long-run relationship with economic liberalization in the case of Ghana, but not for all countries considered.

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Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 12 (2012)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:eaa:aeinde:v:12:y:2012:i:2_2

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  1. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  2. Granger, Clive W J, 1986. "Developments in the Study of Cointegrated Economic Variables," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 213-28, August.
  3. Steel, William F, 1972. "Import Substitution and Excess Capacity in Ghana," Oxford Economic Papers, Oxford University Press, vol. 24(2), pages 212-40, July.
  4. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  5. Rajagopal, 2005. "Where Did the Trade Liberalization Drive Latin American Economy: A Cross Section Analysis," Econometrics 0504003, EconWPA.
  6. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-29, June.
  7. Fielding, David, 1997. "Adjustment, trade policy and investment slumps: evidence from Africa," Journal of Development Economics, Elsevier, vol. 52(1), pages 121-137, February.
  8. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
  9. Ramirez, M.D., 2006. "Latin American Investment Perfomance During the 1980-2002 Period: A Panel Cointegration Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(2).
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