A common characteristic of industries in IS economies was that, they often failed to adopt new technologies even when they were available. This is a preview of subscription content, log in to check access. Sixth edition.
The expansion of manufactured exports is not limited as in the case of IS by the growth of domestic market. If free trade widens the gap between rich and poor nations and makes poor nations poorer, it follows that a poor country should avoid free trade.
Export-led growth strategy strengthens the dualisation in China. A package of policies, called import substitution ISconsists of a broad range of control, restriction and prohibitions such as import quotas and high tariffs on imports.
The infant-industry argument states that sectors and industries that can reasonably be expected to gain comparative advantage, after some learning period, should be protected.
Thus, the initial closing of the market to foreign imports provided a onetime spurt of innovation as new firms were established to take advantage of the profit offered by the protected market.
We guarantee your paper will be written by an appropriately qualified and experienced writer. The East Asian countries have demonstrated clearly the viability of trade policies in promoting industrialisation through reliance on foreign markets as opposed to domestic markets and were based on dynamic comparative advantage that went beyond reliance on primary commodities.