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Industrialisation: Import Substitution to Export Promotion

Kankesu Jayanthakumaran

No WP00-09, Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia

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.

Keywords: import substitution; exports; industrialisation; export promotion (search for similar items in EconPapers)
Pages: 32 pages
Date: 2000
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Citations: View citations in EconPapers (2)

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