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An Appraisal of the Import Substitution Strategy from a Structural Economic Dynamic Approach

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  • Ricardo Azevedo Araujo

    ()
    (Departamento de Economia (Department of Economics) Faculdade de Economia, Administração, Contabilidade e Ciência da Informação e Documentação (FACE) (Faculty of Economics, Administration, Accounting and Information Science) Universidade de Brasília)

  • Joanílio Rodolpho Teixeira

    (Departamento de Economia (Department of Economics) Faculdade de Economia, Administração, Contabilidade e Ciência da Informação e Documentação (FACE) (Faculty of Economics, Administration, Accounting and Information Science) Universidade de Brasília)

Abstract

This paper seeks to establish that a Structural Economic Dynamic (SED) approach toward understanding technological gaps offers a superior method relative to the Import Substitution Strategy (ISS). It is argued that the ISS approach fails to account for the role of demand and hence, the structural dynamics of underdeveloped economies, when considering the role of technological progress. Argued as relatively superior to the ISS, 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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Bibliographic Info

Paper provided by Departamento de Economia da Universidade de Brasilia in its series Working papers - Textos para Discussao do Departamento de Economia da Universidade de Brasilia with number 331.

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Length: 28 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:brs:wpaper:331

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

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