Import substitution development strategy

(redirected from Import-Substitutions)

Import substitution development strategy

A development strategy followed by many Latin American countries and other LDCs that emphasize import substitution-accomplished through protectionism-as the route to economic growth.

Import Substitution Development Strategy

A development strategy whereby a government restricts or forbids the import of industrial material and subsidizes local material. For example, a country may not allow the import of refined oil and instead encourage development of local oil refineries. The idea behind this strategy is to make a less developed country less dependent on international assistance and foreign direct investment until such time as it is can absorb investment more easily and also trade its own products. This development strategy was followed in Latin America and some other regions for most of the mid and late 20th century. It has its theoretical foundations in Keynesian economics, though some analysts have claimed that each nation industrializing after the United Kingdom has followed some form of import substitution.
Mentioned in ?
References in periodicals archive ?
State subsidies to the ageing population and import-substitutions should support producers.
Iftikhar Ali Malik, while citing his Research Centre under aegis of Guard Group, which was involved in production of hybrid-seeds, said that there was need to establish research-based institutions to increase the production of essential crops in the country, which would help save national exchequer as import-substitutions measures.