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An Appraisal of the Import Substitution Strategy from a Structural Economic Dynamic Approach

Ricardo Araujo () and Joanílio Teixeira ()

No 331, Working papers - Textos para Discussao do Departamento de Economia da Universidade de Brasilia from Departamento de Economia da Universidade de Brasilia

Abstract: This paper seeks to establish that a Structural Economic Dynamic (SED) approach toward understanding technological gaps offers a superior method relative to the Import Substitution Strategy (ISS). It is argued that the ISS approach fails to account for the role of demand and hence, the structural dynamics of underdeveloped economies, when considering the role of technological progress. Argued as relatively superior to the ISS, the SED approach considers the evolution of preferences as a variable driving change, shedding new light on main channels of North-South interdependence.

Keywords: Structural Economic Dynamics; Uneven Development; Import Substitution Strategy; Technical Progress; Engel’s Law (search for similar items in EconPapers)
JEL-codes: F12 O19 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-11
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Journal Article: An Appraisal of The Import Substitution Strategy from A Structural Economic Dynamic Approach (2011) Downloads
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