Using the infant industry argument as justification, many less-developed countries pursued policies of import-substituting industrialization in which
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Using the infant industry argument as justification, many less-developed countries pursued policies of import-substituting industrialization in which domestic industries are created under the protection of tariffs or import quotas. Although these policies succeeded in promoting manufacturing, by and large they did not deliver the expected gains in economic growth and living standards. Many economists are now harshly critical of the results of import substitution, arguing that it fostered highcost, inefficient production. LO.1
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International Trade Theory And Policy
ISBN: 978-1292417233
12th Global Edition
Authors: Paul Krugman ,Maurice Obstfeld ,Marc Melitz
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