EC207 Lecture 10: Week-10-3.2
Document Summary
Lesson 3. 2: international trade theory and development strategy: export promotion versus import. Substitution: describe outward-looking and inward-looking development policies. The two broad strategies that are employed by many governments are outward-looking development policies and inward-looking development policies. Outward-looking development policies encourage exports, often through the free movement of capital, workers, and enterprises welcoming multinational corporations and open communications. On the other hand, inward-looking development policies stress economic self-reliance including domestic development of technology, the imposition of barriers to imports, and the discouragement of private foreign investment. Inward-looking development policies focus on the need for nations to develop their own technologies by learning by doing that are aligned with the country"s resources. Most developing economies have employed both strategies at one time and another. 1960s, chile, peru, argentina, india, pakistan, and the philippines were heavily is-oriented, employing inward- looking industrialization strategies. By the end of the 1960s, some of sub-saharan african countries like nigeria,
