Article: Import substitution and export promotion: a continuing dilemma for developing countries?

1. INTRODUCTION

Developing countries (LDCs) have adopted a number of approaches in their attempts to move their economies and societies from a so-called "backward" orientation towards a more "modern" one. Crucial to this process was a desire to change from a rural-traditional dominance to a more modern-industrial mode for the simple reason that development was equated with industrialization. As a result, LDCs pursued a policy of rapid industrialization primarily through a process of import substitution. Some of the negative consequences of this process led to what is considered to be an opposite approach to economic development, the policy of export promotion. ...

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