infant industry

Infant Industry Argument

A policy position stating that new industries developing in a country need government protection. That is, the infant industry argument states that a government must subsidize these industries and/or protect them through tariffs. Proponents of this argument note that several East Asian tigers used this policy following World War II with a great deal of success. Critics maintain that these policies are capital intensive and not all states can afford them. It could also lead to retaliatory moves in countries to which a country seeks to export. See also: Import-substitution industrialization.

infant industry

a newly established industry developed either by private-enterprise interests or set up by governments, often in DEVELOPING COUNTRIES, as part of their INDUSTRIALIZATION programmes. New industries are often subsidized by the government and/or protected from import competition in the hope that in due course they can exploit economies of scale and thus eventually withstand foreign competition. Infant industries are often cited as a legitimate’ area for the application of PROTECTIONISM, but policy in this area is often open to abuse. See ECONOMIC DEVELOPMENT.
References in periodicals archive ?
Western Pennsylvania was the center of the infant industry, as new uses were found for the long familiar product.
Infant industry type arguments might have inspired the adoption of liberal access policies apart from any price subsidy.
The key question is renewable energy is an infant industry that needs special treatment and provides a public good.
A top government official this week condoned the meteoric rise in the prices of chicken and dairy, saying on a public platform Namibians will have to foot the bill for the trade ministry's Infant Industry Protection policies.
The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled Crowd-funding: An Infant Industry Growing Fast.
And our next to-do is for Tses Glass to apply for the Infant Industry Protection to ensure a sustainable manufacturing and operation," states Simon Kapenda, Co-founder and Managing-Director of Tses Glass.
INFANT INDUSTRY The proposed allowance for shale gas, subject to consultation for three months, would reduce the tax payable on income from shale production to 30 from 62 percent for oil and gas.
At the infant industry stage, the Government will subsidize SMEs and farmers so that they can grow and develop to compete internationally while complying with the strict halal process.
This infant industry needs creativity and guidance to ensure Shariah compatibility and integrity of the products offered.
Indonesian Islamic banking will remain an infant industry for at least a decade although Islamic bonds (state and private) shows signs of take-off.
lt;p>Indonesian Islamic banking will remain an infant industry for at least a decade although Islamic bonds (state and private) show signs of take-off.
These contributions present an argument on the benefits of NAMA liberalization for developing countries, evaluate economic implications, discuss preference erosion and government revenues, and explore special and differentiated treatment and infant industry issues.

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