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The political economy of import substitution and subsequent trade liberalization: The case of Turkey

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  • Amelung, Torsten
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    In almost all developing countries early stages of industrialization are marked by import substitution policies., In an attempt to improve standards of living and to enhance output growth, indigenous industrialization was promoted by barriers against foreign competition. Inward industrialization was further assumed to free developing countries from their dependence on industrialized countries and to pave the way to efficiency gains based on local technological development. The pure economic performance of countries pursuing import substitution policies and the successes of countries following a more outward-oriented industrialization path have cast substantial doubt on the wisdom of inward-oriented industrialization strategies. Despite the fairly obvious economic advantages of export-oriented industrialization few developing countries have actually changed their initial inward-oriented industrialization strategies . This adherence of governments and politicians to obvious non-optimal economic policies raises fundamental issues on the determinants of economic policy-making. Yet, there are no studies to date analyzing the economic and political roots, which lead to the choice of a specific industrialization strategy in developing countries.

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    File URL: https://www.econstor.eu/bitstream/10419/47120/1/25568407X.pdf
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    Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Working Papers with number 330.

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    Date of creation: 1988
    Handle: RePEc:zbw:ifwkwp:330
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    1. North, Douglass C., 1979. "A framework for analyzing the state in economic history," Explorations in Economic History, Elsevier, vol. 16(3), pages 249-259, July.
    2. Richard E. Caves, 1976. "Economic Models of Political Choice: Canada's Tariff Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 278-300, May.
    3. Anne O. Krueger, 1974. "Appendices and Index to "Foreign Trade Regimes and Economic Development: Turkey"," NBER Chapters,in: Foreign Trade Regimes and Economic Development: Turkey, pages 271-339 National Bureau of Economic Research, Inc.
    4. Anne O. Krueger, 1974. "Foreign Trade Regimes and Economic Development: Turkey," NBER Books, National Bureau of Economic Research, Inc, number krue74-1.
    5. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-1187, December.
    6. David Stafford Ball, 1967. "United States Effective Tariffs and Labor's Share," Journal of Political Economy, University of Chicago Press, vol. 75, pages 183-183.
    7. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    8. Cheh, John H., 1974. "United States concessions in the Kennedy Round and short-run labor adjustment costs," Journal of International Economics, Elsevier, vol. 4(4), pages 323-340, November.
    9. Anne O. Krueger, 1987. "The Importance of Economic Policy in Development: Contrasts Between Korea and Turkey," NBER Working Papers 2195, National Bureau of Economic Research, Inc.
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