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Industrialisation: Import Substitution to Export Promotion

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Abstract

Import-substitution policy creates biases in the incentive structure and lowers the growth of potential exports in the long run. Trade reforms in this respect are likely to reduce the gap between domestic and border prices. The expectation is to bring better industrial performance on the lines of comparative advantages. This paper examines the import-substitution policy and the effect and impact of trade liberalisation.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012101.pdf
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Bibliographic Info

Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number WP00-09.

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Length: 32 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:uow:depec1:wp00-09

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Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
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Keywords: import substitution; exports; industrialisation; export promotion;

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  1. Jagdish N. Bhagwati, 1978. "Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1, July.
  2. Helleiner, G. K., 1990. "Trade strategy in medium-term adjustment," World Development, Elsevier, vol. 18(6), pages 879-897, June.
  3. Greenaway, David & Nam, Chong Hyun, 1988. "Industrialisation and Macroeconomic Performance in Developing Countries under Alternative Trade Strategies," Kyklos, Wiley Blackwell, vol. 41(3), pages 419-35.
  4. Pack, Howard, 1988. "Industrialization and trade," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 9, pages 333-380 Elsevier.
  5. Warr, Peter G, 1983. "Domestic Resource Cost as an Investment Criterion," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 302-06, July.
  6. Bruno, Michael, 1972. "Domestic Resource Costs and Effective Protection: Clarification and Synthesis," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 16-33, Jan.-Feb..
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