External link to The Structuralist Critique Market

The Structuralist Critique Market

THE STRUCTURALIST CRITIQUE: MARKETS, TRADE, AND ECONOMIC DEVELOPMENT Although protectionism reflected the interests of the politically influential import-competing manufacturing sector, it did not represent a coherent eco- nomic development strategy. And most governments were committed, at least rhetorically, to the adoption of policies that would promote economic devel- opment. Most governments wanted to shift resources out of agricultural pro- duction and into manufacturing industries because […]

External link to The emergence of manufacturing industries

The emergence of manufacturing industries

The emergence of manufacturing industries gave rise to interest groups, industry-based associations, and labor unions that pressured the government to adopt economic policies favorable to people working in the import-com- peting sector. The creation of organized groups to represent the interests of import-competing manufacturing generated its own political logic. On the one hand, the groups that saw their incomes rise from protection had a strong […]

External link to Relative importance of land and capital

Relative importance of land and capital

The relative importance of land and capital in developing countries’ econ- omies can be appreciated by examining the structure of those economies, to- gether with exports, as presented in Table 6.1 and Table 6.2. For the time being, we will focus on 1960, as this will allow us to put to the side the con- sequences of the development policies that governments adopted during the […]

External link to International Pressures and Protectionist Coalitions

International Pressures and Protectionist Coalitions

DOMESTIC INTERESTS, INTERNATIONAL PRESSURES, AND PROTECTIONIST COALITIONS Developing countries’ trade policies underwent a sea change in the first half of the twentieth century. Until the First World War, those developing coun- tries that were independent, as well as those regions of the world held in co- lonial empires, adopted liberal trade policies. They produced and exported agricultural goods and other primary commodities to the advanced […]

External link to Trade and development policies

Trade and development policies

Trade and development policies in developing countries have been strongly shaped by political competition between rural-based agriculture and urban-based manufacturing. Developing countries pursued liberal trade poli- cies prior to World War I because export-oriented agricultural interests domi- nated politics. In general, developing countries are abundantly endowed with land and poorly endowed with capital (Lal and Myint 1996, 104–110).

External link to Import Substitution Industrialization

Import Substitution Industrialization

Trade and Development I: Import Substitution Industrialization they sought to alter the rules governing international trade. Convinced that the GATT was biased against their interests, developing countries worked through the United Nations to create international trade rules that they be- lieved would be more favorable toward industrialization in the developing world. Like Mexico, most governments intervened extensively in their econo- mies in an attempt to […]

External link to Discussion on microeconomic inefficiencies

Discussion on microeconomic inefficiencies

These microeconomic inefficiencies were reinforced by the tendency of most governments to maintain overvalued exchange rates. Ideally, a govern- ment should maintain an exchange rate that equalizes the prices of goods in the domestic and foreign markets. However, under ISI, many governments set the exchange rate higher than that, and as a result, foreign goods were cheaper in the home market than they should have […]

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