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• W2413302486 abstract "Development economics has been subject to significant shifts in viewpoint concerning the role of trade in economic development. After World War II there was a general pessimism with respect to the potential of trade to promote rapid growth. ' Alternatively, there was a general optimism with respect to the capabilities of the state to carry out effective development policy. Out of these views evolved the import-substitution strategy of economic development.2 It involved utilizing a variety of policy instruments (tariffs, quotas, and subsidies) to protect the domestic market for many types of manufactured goods. Thus the incentive to produce for the domestic market was increased relative to the incentive to export. All of this involved a significant role for government policy making. Difficulties encountered in the pursuit of import substitution as well as additional theoretical work led to a critical reevaluation of this approach. The result was the evolution of an outward-oriented strategy of development.3 This perspective was generally very optimistic concerning the positive role that trade, in particular export expansion, could play in overall development. At the same time, proponents of this viewpoint were very pessimistic concerning the ability of the state to carry out effective policy. Thus the state should refrain from interfering with trade, and incentives to producers for production aimed at the domestic market versus foreign markets should be neutral or unbiased in nature. These two strategies have often been viewed as opposites or completely separate theoretical categories. This paper will argue that they are not opposites, but simply alternative ways for stimulating the growth in the size of markets for manufactured goods. It is the latter that is crucial in the process by which late-developing nations" @default.
• W2413302486 created "2016-06-24" @default.
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• W2413302486 date "1994-01-01" @default.
• W2413302486 modified "2023-09-26" @default.
• W2413302486 title "Import Substitution, Export Promotion, and the State in Economic Development" @default.
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