import penetration

import penetration

the proportion of domestic consumption accounted for by IMPORTS. In the case of particular products the displacement of domestic supply by imports may be beneficial, allowing consumers access to products at lower prices than can be obtained from local producers (see INTERNATIONAL TRADE). Widespread import penetration across the economy however, when unmatched by an equivalent volume of EXPORTS, can result in BALANCE OF PAYMENT difficulties, falling domestic output and job losses (see UNEMPLOYMENT). In the case of the UK, import penetration in the competitive manufacturing sector has increased substantially, imports rising from 7% of domestic consumption of manufactures in 1955 to 51% in 2004. See also STRUCTURE OF INDUSTRY.
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fig. 85 important penetration. The Uk import penetration ratio for manufacutured good. Source:office for National Statistics.

import penetration

an increase in the proportion of domestic CONSUMPTION accounted for by IMPORTS. In particular cases the displacement of domestic supply by imports may be beneficial insofar as it reflects COMPARATIVE ADVANTAGE (imports cheaper than domestic goods). Widespread import penetration across the economy however, not matched by an equivalent amount of EXPORTS, can result in balance-of-payments difficulties and a fall in domestic income and output levels. In the case of the UK, import penetration in the manufacturing sector has increased markedly in the period since 1955, as Fig. 85 shows. See PROPENSITY TO IMPORT, DEINDUSTRIALIZATION.
References in periodicals archive ?
In contrast, Lu and Ng (2013) suggest that the positive relationship between skill intensity at the industry-level and import penetration in the US over the period 1970-90 does not specifically pertain to imports from China or from other low-wage economies.
The level of import penetration faced by an industry has become a standard component of models of endogenous trade policy formation (Goodhart 2015).
c], constructed similarly, measures import penetration and is defined as the fraction of import in total domestic sales.
Garten, author and emeritus dean of the Yale School of Management, in a memo to the candidates, but "with America's failure to create policies at home that equip workers to adjust to rapid import penetration and to exploit new opportunities that trade could bring.
The US market has been largely supplied by domestic producers, although imports are taking a growing share of consumption, with import penetration rising to just over 40% in 2014.
The study observed that removal of restrictions in trade, in terms of lowering of tariff barriers and dismantling of import licensing regime, has been substantial since 1990-91 but the gain in terms of import penetration has not been of the similar order.
Fourth, it is also easily recognized that some products in table 2 have received high tariff protection in spite of their low import penetration ratio (Flowers, Garlic, Apricot, Plum, Mulberry, Processed citrus, ).
is due to increasing import penetration in the tire sector, while the situation in the EU-28 may be explained by negative domestic end-rubber products demand as a result of continued absence of sustained regional economic recovery.
The relationship between industry price change and the globalization levels of import penetration and net import penetration was negatively significant in both 1997 and 2002; however, between export intensity and domestic price change, a corresponding relationship was not consistent
In general, the results show that trade liberalisation, measured through import penetration ratio, export penetration ratio and relative prices of each industry, not only impacted wages but also increased wage inequality across skill levels from 1996-97 to 2005-06.
While accepting that the removal of import tariffs and controls were partly responsible for the increased imports, regressions were thus conducted of observations for annual increases in union membership against the same for import penetration, defined as the ratio of imports to domestic shipments.
The losses (or gains) of output and employment in the Turkish economy as a result of foreign trade can be attributed to some trade-related factors such as import penetration and substitution effects and exports along with changes in technology and final demand.