1 option
The Pitfalls of Protectionism: Import Substitution vs. Export-Oriented Industrial Policy / Reda Cherif, Fuad Hasanov.
- Format:
- Book
- Government document
- Author/Creator:
- Cherif, Reda.
- Series:
- IMF Working Papers; Working Paper ; No. 2024/086
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (41 pages)
- Other Title:
- Pitfalls of Protectionism
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2024.
- Summary:
- Industrial policies pursued in many developing countries in the 1950s-1970s largely failed while the industrial policies of the Asian Miracles succeeded. We argue that a key factor of success is industrial policy with export orientation in contrast to import substitution. Exporting encouraged competition, economies of scale, innovation, and local integration and provided market signals to policymakers. Even in a large market such as India, import substitution policies in the automotive industry failed because of micromanagement and misaligned incentives. We also analyze the risk tradeoffs involved in various industrial policy strategies and their implications on the 21st century industrial policies. While state interventions may be needed to develop some new capabilities and industries, trade protectionism is neither a necessary nor a sufficient tool and will most likely be counterproductive.
- Notes:
- Description based on print version record.
- ISBN:
- 9798400273339
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.