The Rise and Fall of Import Substitution

Douglas Irwin

No WP20-10, Working Paper Series from Peterson Institute for International Economics

Abstract: In the 1950s, many economists believed that import substitution—policies to restrict imports of manufactured goods—was the best trade strategy to promote industrialization and economic growth in developing countries. By the mid-1960s, however, there was widespread disenchantment with the results of such a policy, even among its proponents. This paper traces the rise and fall of import substitution as a development idea. Perhaps surprisingly, early advocates of import substitution were quite cautious in their support for the policy and were also among the first to question it based on evidence derived from country experiences.

Keywords: import substitution; industrialization; export promotion (search for similar items in EconPapers)
JEL-codes: B27 F13 O24 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-his and nep-int
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Citations: View citations in EconPapers (2)

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Working Paper: The Rise and Fall of Import Substitution (2020)
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