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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.

Suggested Citation

  • Jayanthakumaran, K., 2000. "Industrialisation: Import Substitution to Export Promotion," Economics Working Papers WP00-09, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp00-09
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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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    References listed on IDEAS

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    1. 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..
    2. 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.
    3. repec:bla:kyklos:v:41:y:1988:i:3:p:419-35 is not listed on IDEAS
    4. Warr, Peter G, 1983. "Domestic Resource Cost as an Investment Criterion," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 302-306, July.
    5. Helleiner, G. K., 1990. "Trade strategy in medium-term adjustment," World Development, Elsevier, vol. 18(6), pages 879-897, June.
    6. Paul Krugman, 1992. "Does the New Trade Theory Require a New Trade Policy?," The World Economy, Wiley Blackwell, vol. 15(4), pages 423-442, July.
    7. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
    8. Jagdish N. Bhagwati, 1978. "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
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    Cited by:

    1. Yelena Andreyeva & Artyom Ratner & Oksana Voronkova & Anatoly Tarasov, 2018. "The Influence of Import Substitution on Regional Positioning in the System of International Economic Relations," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1438-1449.
    2. Dimitrios Karkanis & Myrsini Fotopoulou, 2023. "Import Substitution or Just “Catching the Wave”? Evidence from the Greek Manufacturing Exports," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-15.

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