All posts tagged 'Industrialization'

Strategies for industrialization: Export promotion

The are several keywords:
Export-oriented industrialization
export led industrialization
export-led growth

While import substitution is a necessity for sovereign economies, it can create a number of issues in market dynamics. By itself import substitution is not the most efficient way to strengthen an economy,. It needs to be combined to a strong export policy, not of raw resources, but of manufactured goods.
Prime examples of this are East Asian countries: Japan, South Korea, Taiwan and China.
The export-oriented industrialization allows goods, built with import substitution policies, to be exported abroad. This relieves the market of over production.
Export led industrialization, by combining both import substitution and push for export, leads to massive industrialization. These policies increase growth, trade balances and and many other benefits.