IMPORT SUBSTITUTION IN MODERN CONDITIONS

Import Substitution and Economic Growth

In spite of Latin America’s dismal economic performance between the 1950s and 1980s, the region experienced strong capital deepening. Furthermore, productivity (measured as TFP) grew at low rates in comparison with the U.S. In this paper, we suggest that all these facts can be explained as a consequence of the restrictive trade regime adopted at that time. Our analytical framework is based on a...

Modern Nucleophilic Aromatic Substitution

Rice import substitution and employment in Papua New Guinea

Policymakers in Papua New Guinea want to expand the local rice industry. Currently, imports from Australia meet 99 per cent of rice demand. The Papua New Guinea government has an initial goal of reducing imports by 40 per cent. This self-sufficiency drive is fuelled by the size of the rice import bill, the desire for more jobs and the worry that it is wrong to import food. Concern over rice imp...

Intertemporal substitution in import demand and habit formation

To study non-durable import demand, we extend previous work done by Clarida (1994) and Ceglowski (1991) by considering a two-good version of the life cycle model in which we introduce time-nonseparability in the households' preferences. The model is estimated using quarterly data for US and France. Using the information contained in the observed stochastic and deterministic trends, we derive a ...

Agglomeration and economic development: Import substitution vs trade liberalisation

This paper analyses a model of economic development in which international differences in industrial structure and income are caused by the agglomeration of industry in a subset of countries. Economic development may not be a gradual process of convergence by all countries, but instead involve countries moving sequentially from the group of poor countries to the group of rich countries. The rol...