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An Appraisal of The Import Substitution Strategy from A Structural Economic Dynamic Approach

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  • Ricardo Azevedo Araujo

    ()
    (University of Brasilia, Brasília)

  • Joanilio Rodolpho Teixeira

    ()
    (University of Brasilia, Brasília)

Abstract

This paper seeks to establish that a Structural Economic Dynamic (SED) approach toward understanding the Import Substitution Strategy (ISS) offers a superior method relative to the Neoclassical approach. It is argued that the latter fails to fully account for the role of demand and hence, the structural dynamics of underdeveloped economies, when considering the shortcomings of the ISS. Argued as relatively superior to the Neoclassical view, the SED approach considers the evolution of preferences as a variable driving change, shedding new light on main channels of North-South interdependence.

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File URL: http://www.ecrg.ro/files/p2011.1(2)1a5.pdf
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Bibliographic Info

Article provided by Weissberg Publishing in its journal Economic Research Guardian.

Volume (Year): 1 (2011)
Issue (Month): 2 (December)
Pages: 109-122

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Handle: RePEc:wei:journl:v:1:y:2011:i:2:p:109-122

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Keywords: Structural Economic Dynamics; Uneven Development; Import Substitution Strategy; Technical Progress; Engel’s Law;

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