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Openness and industrialization in developing countries

Don Clark, W. Charles Sawyer and Richard Sprinkle

Applied Economics Letters, 1999, vol. 6, issue 3, 161-164

Abstract: This paper investigates the relationship between trade policy orientation and industrialization. Growth rates of manufacturing value added, rather than output growth rates, are related to index of real exchange rate distortion to establish the superiority of outward-oriented strategies in fostering industrial development. Results suggest developing countries will industrialize faster by adopting outward-oriented trade strategies than by using import substitution industrialization policies.

Date: 1999
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DOI: 10.1080/135048599353546

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