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A Comparison of Regional Export Enhancement and Import Substitution Economic Development Strategies

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  • Cooke, Stephen C.
  • Watson, Philip

Abstract

Absent from the economic development literature is a manageable and quantitative analysis that compares regional export enhancement and import substitution strategies. Single sector Leontief and Keynesian models are developed to show how these development strate-gies relate to one another. Both strategies have identical direct effects on an economy, but import substitution increases the indirect effects through additional endogenous purchases, which then increase the output and income multipliers. Assuming identical comparative advantage of both strategies, regional import substitution is found to be at least as good an economic development strategy as regional export enhancement.

Suggested Citation

  • Cooke, Stephen C. & Watson, Philip, 2011. "A Comparison of Regional Export Enhancement and Import Substitution Economic Development Strategies," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(1), pages 1-15.
    • Handle: RePEc:ags:jrapmc:132457
    DOI: 10.22004/ag.econ.132457
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    Cited by:

    1. Kholmov N.V. & Kholmova A.D. & Zhetpisov T.M. & Salamatina A.A., 2020. "Import Substitution As An Instrument Of Proactive Industrial Policy," Annals of marketing-mba, Department of Marketing, Marketing MBA (RSconsult), vol. 2, May.
    2. Yurdagül Meral, 2019. "High technology export and high technology export impact on growth," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 1(3), pages 32-38, July.
    3. Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg, 2015. "A Method for Improving Economic Contribution Studies for Regional Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    4. Jason Winfree & Philip Watson, 2021. "Buy Local and Social Interaction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1454-1477, August.
    5. Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg & Morales, Alfonso, 2017. "A Method for Evaluating the Economic Contribution of a Local Food System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    6. Tongzhe Li & Kent D. Messer & Alisher Mamadzhanov & Jill J. McCluskey, 2020. "Preferences for local food: Tourists versus local residents," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 429-444, December.
    7. Steven C. Deller & Tessa Conroy & Philip Watson, 2017. "Women business owners: a source of stability during the great recession?," Applied Economics, Taylor & Francis Journals, vol. 49(56), pages 5686-5697, December.

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