TAILIEUCHUNG - Lecture Development economics - Lecture 30: Trade policy in developing countries

Lecture Development economics - Lecture 30: Trade policy in developing countries. This chapter presents the following content: Introduction, import-substituting industrialization, problems of the dual economy, export-oriented industrialization: the east asian miracle. | Trade Policy in Developing Countries Lecture 30 Chapter Organization Introduction Import-Substituting Industrialization Problems of the Dual Economy Export-Oriented Industrialization: The East Asian Miracle Summary Introduction There is a great diversity among the developing countries in terms of their income per capita. How, if at all, is this variation in per capita income related to variation in trade policies? Do protectionist policies cause economic backwardness? Failure of import-substituting industrialization Success of export-oriented industrialization Does economic backwardness require protectionist policies? Economic dualism Introduction Table 10-1: Update See the CIA World Factbook 2004 for recent data on per capita GDP. Import-Substituting Industrialization From World War II until the 1970s many developing countries attempted to accelerate their development by limiting imports of manufactured goods to foster a manufacturing sector serving the domestic market. The most important economic argument for protecting manufacturing industries is the infant industry argument. This argument suggested that trade may be good for rich countries but bad for poor countries. Import-Substituting Industrialization The Infant Industry Argument It states that developing countries have a potential comparative advantage in manufacturing and they can realize that potential through an initial period of protection. It implies that it is a good idea to use tariffs or import quotas as temporary measures to get industrialization started. Example: The . and Germany had high tariff rates on manufacturing in the 19th century, while Japan had extensive import controls until the 1970s. Import-Substituting Industrialization Problems with the Infant Industry Argument It is not always good to try to move today into the industries that will have a comparative advantage in the future. Example: In the 1980s South Korea became an exporter of automobiles. At that time it was

• Kinh tế học
• Development economics
• Lecture Development economics
• Kinh tế phát triển
• Economic growth
• Developing nations
• Trade policy
• Economics of agricultural development
• Master of Arts in Economics of development
• Economics of development
• Vietnam the netherlands project
• Exports case for Vietnam
• Studying development
• Millennium development goals
• Human development approach
• Capability approach
• Theories of economic development
• Strategy for agricultural
• Rural development
• Master Thesis in Economics
• Master Thesis in Economics sample
• The recession economics
• Training and development
• Management perspective
• Economics of Ireland
• Accounting undergraduate Honors theses
• Essays in development economics and economics of the family
• Economics of the family
• The microcredit collateralized debt obligation
• Hypothetical organization called the Central Microcredit Clearinghouse
• Lecture Economics
• Public economics
• Kinh tế học
• Foreign markets
• Lecture Product Design and Development
• Product design
• Product development
• Product development economics
• Product development cash flow
• Project financial analysis
• Measuring economic growth
• Basic need approach
• Physical quality
• Good governance
• Humane governance index
• Nurkses Model
• Vicious Circle of Poverty
• Agriculture sector
• Human capital
• Foreign aid